Forexpros – The euro tumbled to an eight-month low against the U.S. dollar on Monday, as fears over a lack of progress in resolving the financial crisis in the euro zone saw investors shun riskier assets.
EUR/USD hit 1.3364 during late Asian trade, the pair’s lowest since January 18; the pair subsequently consolidated at 1.3392, shedding .77%.
The pair was likely to find support at 1.3088, the low of January 13 and resistance at 1.3566, last Friday’s high.
Weekend meetings of leaders from the G-20 nations and the International Monetary Fund resulted in no fresh steps to tackle the debt crisis in the single currency bloc.
Meanwhile, Germany’s deputy finance minister Joerg Asmussen said Sunday that a decision on Greece’s next tranche of aid was unlikely to be made at a meeting on October 3rd as previously expected, because a report by the IMF, European Central Bank and European Commission has been delayed.
The euro was also sharply lower against the pound, with EUR/GBP tumbling 0.88% to hit 0.8661.
Later in the day, the Ifo Institute for Economic Research was to publish a report on German business sentiment, while the U.S. was to produce government data on new home sales.
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