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Forex - EUR/USD tumbles to 5-week low on euro zone sovereign debt concerns

Published 11/10/2010, 10:37 AM
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Investing.com – The euro extended losses against the U.S. dollar on Wednesday, falling for the fourth consecutive day to hit a 5-week low, amid lingering concerns over sovereign debt problems in peripheral euro zone nations.

EUR/USD hit 1.3670 during European afternoon trade, the pair’s lowest since October 5; the pair subsequently consolidated at 1.3694, shedding 0.57%.

The pair was likely to find support at 1.3618, the low of October 1, and resistance at 1.3973, Tuesday’s high.

Earlier in the day, Portugal’s government auctioned EUR 556 million of bonds due in October 2016, offering a yield of 6.156%, up from the 4.371% rate it paid at a similar auction in August.

The country also sold EUR 686 million of bonds due in June 2020 at a rate of 6.846%.

Meanwhile, the euro was down against the pound, with EUR/GBP falling 0.84% to hit 0.8543.

Earlier in the day, official U.S. data showed that the number of individuals filing for initial jobless benefits in the week ending November 6 fell to a seasonally adjusted 435K, after rising to a revised 459K in the preceding week. Analysts had expected initial jobless claims to fall to 450K in the week ending November 6.

Official U.S. data also showed that the country’s trade deficit narrowed more-than-expected in September, while import price rose less-than-expected.


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