Forex Pros – The euro slipped to a two-day low against the U.S. dollar amid choppy trade on Tuesday, as fears over Japan’s escalating nuclear emergency sparked a broad selloff as investors sought refuge in safe haven assets.
EUR/USD hit 1.3894 during European morning trade, the pair’s lowest since Friday; the pair subsequently consolidated at 1.3935, shedding 0.40%.
The pair was likely to find support at 1.3751, Friday’s low and resistance at 1.4035, the high of March 7 and a four-month high.
Earlier in the day, Japanese authorities said an explosion at the No. 2 reactor at the Fukushima Daiichi nuclear power plant, located 155 miles northeast of Tokyo, appeared to have caused damage.
Following the blast, Japanese Prime Minister Naoto Kan said there was a high risk of elevated levels of radiation from the reactor that exploded and urged people within 30 kilometers of the plant to stay indoors.
In a televised address, Prime Minister Kan said “Substantial amounts of radiation are leaking in the area,” urging people to remain calm. “We are making utmost efforts to prevent further explosions or the release of radioactive materials.”
The euro was also lower against the yen, with EUR/JPY shedding 0.53% to hit 113.59.
Later in the day, the U.S. Federal Reserve was to announce its federal funds rate. The U.S. was also to publish official data on manufacturing activity in the New York region.
ForexPros.com
