Forexpros – The euro trimmed losses against the U.S. dollar on Monday, pulling away from a two-day low amid speculation that Italian Prime Minister Silvio Berlusconi is set to resign.
EUR/USD pulled back from 1.3682, the pair’s lowest since Thursday, to hit 1.3772 during European late morning trade, still down 0.14% on the day.
The pair was likely to find support at 1.3655, last Thursday’s low and resistance at 1.3868, Friday’s high.
The euro regained ground as Italian borrowing costs eased off earlier record highs, following reports in Italian media outlets that Prime Minister Berlusconi is about to step down, ahead of a parliamentary vote on public finances on Tuesday.
But the single currency remained under pressure after official data showed that German industrial output fell more-than-expected in September.
Industrial production dropped by a seasonally adjusted 2.7% in September, a much larger fall than the 0.9% drop forecast by economists, adding to concerns over a slowdown in the region. The report also said production was expected to continue to slow over the coming months as a result of fewer orders.
A separate report showed that retail sales in the single currency bloc fell more-than-expected in September, dropping 0.7%, far more than expectations for a 0.1% decline.
The euro was also lower against the pound, with EUR/GBP shedding 0.27% to hit 0.8577.
Later in the day, euro zone finance ministers were to meet to discuss the latest developments in Greece as well as how to implement summit decision reached by euro-zone nations late last month.
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