Forexpros – The euro moved lower against the U.S. dollar on Monday, as fears over a slowdown in global growth and broad concerns over the ongoing sovereign debt crisis in the euro zone weighed on investor confidence.
EUR/USD hit 1.2510 during late Asian trade, the pair’s lowest since June 13; the pair subsequently consolidated at 1.2512, shedding 0.45%.
The pair was likely to find support at 1.2434, the low of June 8 and resistance at 1.2707, last Thursday’s high.
Concerns that the crisis in Europe is creating a drag on global growth weighed, following a string of data late last week which indicated weak U.S. manufacturing activity, a shrinking Chinese manufacturing sector and slowing business activity across the single currency bloc.
Investors also remained cautious ahead of a European Union summit due to begin later in the week, amid hopes for progress on greater fiscal integration and allowing the bloc’s rescue funds to buy government debt.
Elsewhere, Spain’s government was expected to make a formal request for aid for its banking sector later in the day, after reports on Thursday indicated that Madrid would need a rescue package of as much as EUR62 billion.
The euro was also lower against the pound and the yen, with EUR/GBP shedding 0.40% to hit 0.8031 and EUR/JPY dropping 0.82% to hit 100.27.
Later Monday, the U.S. was to release official data on new home sales.
Forexpros
