Forexpros – The euro extended losses against the U.S. dollar on Tuesday, tumbling to a three-day low as concerns over the deepening financial crisis in the euro zone weighed on the single currency.
EUR/USD hit 1.3513 during European late morning trade, the pair’s lowest since November 10; the pair subsequently consolidated at 1.3526, falling 0.80%.
The pair was likely to find support at 1.3377, the low of October 10 and resistance at 1.3640, the days high.
Italy’s 10-year bond yields rose to near unsustainable levels, climbing above 7%, while Spanish 10-year yields rose above 6% for the first time since the European Central Bank started to buy the country’s bonds in August.
Meanwhile, data showed that the ZEW index of German economic sentiment declined significantly more-than-expected in November, falling to a three-year low of minus 55.2, as political uncertainty in Greece and Italy weighed on the outlook for the region.
A separate report showed that gross domestic product in the euro zone increased by 0.2% during the third quarter, in line with expectations, following growth of 0.2% in the previous quarter.
Germany’s GDP rose in line with expectations in the third quarter, expanding 0.5%, from an upwardly revised 0.3% in the preceding quarter.
France’s GDP expanded by 0.4% on the quarter, having contracted by 0.1% in the previous three months.
The euro was also down against the pound, with EUR/GBP shedding 0.54% to hit 0.8522.
Later in the day, the U.S. was to release official data on retail sales and producer price inflation.
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