Forexpros – The euro slipped against the U.S. dollar on Monday, remaining within striking distance of an 11-month low as reports of the death of North-Korean leader Kim Jong il supported safe haven demand.
EUR/USD hit 1.2983 during late Asian trade, the pair subsequently consolidated at 1.3012, shedding 0.23%.
The pair was likely to find support at 1.2945, the low of December 14 and an 11-month low and resistance at 1.3083, the high of December 16.
The dollar strengthened broadly on the news of Kim Jong il’s death as concerns over geopolitical instability in northeast Asia escalated amid uncertainty over the future leadership of the state.
Meanwhile, concerns over mass credit rating downgrades across the euro zone lingered after Fitch Ratings put six euro zone nations including Spain and Italy on watch for downgrades on Friday, saying a “comprehensive solution” to the region’s debt crisis was “technically and politically beyond reach.”
Moody’s Investors Service also downgraded Belgium two notches.
The euro was fractionally higher against the pound, with EUR/GBP easing up 0.04% to hit 0.8393.
Later in the day, European Union leaders were to hold talks to discuss measures to resolve the debt crisis, including the possibility of European nations lending EUR200 billion to the International Monetary Fund.
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