Forexpros – The euro dropped against the U.S. dollar as ECB head Mario Draghi warned on the costs of a euro zone break up sending waves of fear into the region.
EUR/USD hit a low of 1.2983 during mid session U.S. trade. The pair is off a high of 1.3043 and is currently trading at 1.3014, down 0.21%.
The pair was likely to find support at 1.3006 and technical resistance exists at 1.3023.
The single currency snapped a three day winning streak on a lack of confidence that the self imposed IMF funding deadline will be met, in addition to, geopolitical instability fears due to Korean dictator Kim Jong’s death.
Draghi broke a long standing taboo by mentioning a break up of the euro zone as he struggled to play down the role of the ECB in fighting the debt crisis.
A Fitch downgrade of France and downgrade warnings for other EU nations added to the bearish sentiment.
Meanwhile, Sweden’s Krona also strengthened against the euro as the nations central bank is projected to cut its seven day repo rate to 1.75% tomorrow, according to 11 of 24 economists surveyed by Bloomberg.
The Euro was also lower against the pound with EUR/GBP dropping 0.10% to hit 0.8382.
Investors are awaiting German inflation figures and Swiss trade balance numbers tomorrow.
&nb
Forexpros
