Forexpros – bsp; Forexpros – The euro slipped against the U.S. dollar in mid London, light holiday trade Friday, facing its first consecutive annual loss since 2001 on euro zone debt fears
EUR/USD hit a low of 1.2905 during mid session London trade. The pair is off a high of 1.2965 and is currently trading at 1.2936 down 0.19%.
The pair was likely to find short term support at 1.2922 and intraday technical resistance exists at 1.2955.
Light Christmas and New Years holiday volume persisted as traders relaxed in preparation for 2012.
Italy’s Treasury long term bond auction missed targets yesterday increasing debt fears weighing on the single currency.
Peter Rosenstreich of Swissquote Bank exclaimed to Bloomberg, “The dark clouds ( for the euro ) are getting darker. We are seeing death by a thousand cuts.”
The last 24 months of euro zone official meetings have failed to control the debt crisis. The region has seen bailouts of Greece, Portugal and Ireland with trouble brewing in Spain and Italy.
Although a gauge of euro zone manufacturing activity rose from 46.4 to 46.9 in December, readings below 50 still indicate economic contraction providing little hope for the region.
Earlier, the euro fell to a 10 year low against the yen on fears of further cash injections by the European Central Bank
The Euro fell against the pound with EUR/GBP dropping by 0.50% to 0.8362.
Investors are awaiting French President Sarkozy and German Chancellor Merkel’s meeting in Berlin starting on January 9th.
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