Forex Pros – The euro extended losses against the U.S. dollar on Wednesday, tumbling to a two-week low as ongoing uncertainty over a resolution to Greece’s sovereign debt crisis weighed.
EUR/USD hit 1.4300 during European late morning trade, the pair’s lowest since May 31; the pair subsequently consolidated at 1.4313, dropping 0.88%.
The pair was likely to find support at 1.4124, the low of May 27 and resistance at 1.4450, the days high.
The single currency came under pressure after an emergency session of European Union finance ministers on Tuesday failed to reach an agreement on how private holders of Greek debt should share the cost of a new aid package for Greece, with the European Central Bank warning that such a move could constitute a default.
Meanwhile, ratings agency Moody’s placed three of Frances largest lenders under review, pending possible downgrades due to their exposure to Greek debt.
Moody’s is to review the ratings of BNP Paribas SA, France’s biggest bank, as well as counterparts Societe Generale SA and Credit Agricole SA, looking at their holdings of Greek public and private debt.
The euro was also down against the pound, with EUR/GBP shedding 0.36% to hit 0.8789.
Later in the day, the U.S. was to publish official data on consumer price inflation, as well as reports on foreign investment, industrial production and manufacturing activity.
ForexPros.com
