Forexpros – The euro fell to a three-week low against the U.S. dollar on Monday, as ongoing worries about the regions debt crisis and concerns over the outlook for U.S. growth weighed.
EUR/USD hit 1.4108 during European early afternoon trade, the pair’s lowest since August 11; the pair subsequently consolidated at 1.4112, shedding 0.65%.
The pair was likely to find support at 1.4054, the low of August 5 and resistance at 1.4287, last Friday’s high.
The single currency came under broad selling pressure after Chancellor Angela Merkel’s ruling party were defeated in local elections on Sunday.
The result may hamper efforts to grant new powers to the euro zone’s bailout fund, with Germany’s constitutional court due to rule Wednesday on the legality of Greece’s latest rescue package.
Elsewhere, data on Friday, showing that the U.S. economy added virtually no jobs in August for the first time in almost a year added to expectations that the Federal Reserve will embark on a third round of monetary stimulus, to shore up faltering U.S. growth.
The euro was also lower against the pound, with EUR/GBP slipping 0.14% to hit 0.8747.
Also Monday, official data showed that retail sales in the euro zone rose by a seasonally adjusted 0.2% in July, above expectations for a 0.1% increase.
Meanwhile, markets in the U.S. were to remain closed for the Labor Day holiday.
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