Forexpros – The euro was slightly lower against the U.S. dollar on Tuesday, trading in a narrow range as investors anxiously awaited the outcome of an Italian vote on budget reforms, while Italian Prime Minister Silvio Berlusconi resisted calls to step down.
EUR/USD hit 1.3725 during European early afternoon trade, the daily low; the pair subsequently consolidated at 1.3761, slipping 0.10%.
The pair was likely to find support at 1.3655, the low of November 3 and resistance at 1.3829, Monday’s high.
Investors remained jittery ahead of a critical vote on Prime Minister Silvio Berlusconi’s budget. If the vote is defeated it could topple Mr. Berlusconi’s government and allow for the formation of a new government to guide the country out of the financial crisis.
On Monday, Berlusconi denied speculation that he was planning to resign after Italy’s borrowing costs surged to euro-era highs.
Meanwhile, in Greece officials were expected to announce the new head of an interim government later in the day, as efforts continued to avert an imminent default by implementing a new bailout program.
The euro was also lower against the pound, with EUR/GBP slipping 0.11% to hit 0.8570.
Also Tuesday, finance ministers from the European Union member states were to meet in Brussels to discuss the region’s ongoing financial crisis.
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