Forexpros – The euro fell against the dollar on Tuesday as investors looked past Spain’s EUR100 billion bailout and turned their attention to Greece, where upcoming elections could determine whether the country remains in the eurozone.
Investors awaited details behind the bailout as well, included how the money will be distributed and under what terms.
In Asian trading on Tuesday, EUR/USD was trading down 0.06% at 1.2474, and up from a session low of 1.2451, and off from a high of 1.2483.
The pair was likely to find support at 1.2436, the low of June 8 and resistance at 1.2572, the high of June 8.
The euro rocketed in previous sessions over weekend news that eurozone finance ministers agreed to arrange EUR100 billion in emergency financing for Spain to prop up its banking sector.
Spain has become the fourth eurozone country to seek a bailout, following Greece, Portugal and Ireland.
However, Greece will hold parliamentary elections on June 17, and polls have not indicated a frontrunner political party with any consistency.
The conservative New Democracy, which favors sticking with austerity measures to a degree in exchange for continued bailout assistance, has risen in some polls, while the leftwing Syriza, which seeks to ditch austerity and risk losing eurozone membership, has also fared well in the polls.
Uncertainty sent the euro weakening on Tuesday.
The currency did see some support on news that French industrial output grew 1.5% in April from March, outpacing market expectations for a contraction of 0.5%.
The euro, meanwhile, was down slightly against the pound and down against the yen, with EUR/GBP down 0.02% at 0.8058 and EUR/JPY trading down 0.20% at 98.97.
On Tuesday, the U.S. is to publish official data on import prices as well as a government report on the federal budget balance.
Forexpros
