Forexpros – The euro extended the previous day’s losses against the U.S. dollar on Thursday, falling to a one-month low as mounting concerns over a spike in Italian bond yields boosted demand for the safety of the greenback.
EUR/USD hit 1.3484 during late Asian trade, the pair’s lowest since October 10; the pair subsequently consolidated at 1.3505, shedding 0.26%.
The pair was likely to find support at 1.3377, the low of October 10 and resistance at 1.3558, the day’s high.
The euro posted its largest one-day loss against the greenback in 15-months on Wednesday after the yield on 10-year Italian government bonds rose above 7%, the level at which Greece, Ireland and Portugal sought international bailouts.
Meanwhile, officials in Greece were continuing with talks aimed at appointing a new coalition government.
European Commission President Jose Manuel Barroso urged European Union member states to “unite or face irrelevance” in the face of the increasingly desperate situations in Italy and Greece.
The euro was also lower against the pound, with EUR/GBP slipping 0.16% to hit 0.8495.
Later in the day, Italy was to auction EUR5 billion in one-year Treasury bills. In addition, the U.S. was to release official data on jobless claims as well as a report on the trade balance.
Forexpros
