Forexpros – The euro weakened against the U.S. dollar on Wednesday, amid fears that France’s triple A credit rating might be in danger and after disappointing China manufacturing data underlined fears over a global economic slowdown.
EUR/USD hit 1.3446 during late Asian trade, the pair’s lowest since Monday; the pair subsequently consolidated at 1.3465, shedding 0.28%.
The pair was likely to find support at 1.3421, the low of November 17 and a six-week low and resistance at 1.3568, Tuesday’s high.
The euro came under pressure after Belgian newspaper reports that Belgium and France were in fresh talks over an existing bailout plan for troubled lender Dexia, fanning fears over that France could have to play a larger role in the rescue.
Risk appetite was also hit after China’s November HSBC preliminary manufacturing purchasing managers’ index fell to a 32-month low of 48.0, dropping below the 50-point level that denotes a contraction, as new orders slumped.
The euro was also lower against the pound, with EUR/GBP shedding 0.19% to hit 0.8620.
Later in the day, the euro zone was to produce preliminary data on manufacturing and service sector growth, while France and Germany were to publish individual reports. The single currency bloc was also to publish official data on industrial new orders.
The U.S. was to publish a string of economic data ahead of Thursday’s Thanksgiving holiday, including a government report on durable goods orders, the weekly report on initial jobless claims as well as data on crude oil stockpiles, inflation, personal income and personal spending.
Meanwhile, the University of Michigan was to release revised data on inflation expectations and consumer sentiment.
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