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Forex - EUR/USD edges lower amid sustained E.Z., Greece worries

Published 03/06/2012, 02:10 AM
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Investing.com - The euro edged lower against the U.S. dollar on Tuesday, as concerns over the handling of Greece’s sovereign debt persisted while slowing economies in China and Europe weighed on market sentiment.

EUR/USD hit 1.3188 during late Asian trade, the daily low; the pair subsequently consolidated at 1.3204, slipping 0.11%.

The pair was likely to find support at 1.3114, the low of February 17 and resistance at 1.3292, the high of February 21.

Markets remained jittery ahead of the March 8 deadline for bondholders to join the agreement under which they will exchange their existing Greek government bonds for new paper in a swap deal.

Meanwhile, China's lowering of its growth target and data pointing to the euro zone possibly slipping back into recession weakened investor confidence.

Data showed on Monday that the euro zone's services sector contracted at a faster rate than initially estimated in February, shrinking for the fifth time in six months, while investor confidence improved less-than-expected this month, remaining in negative territory for the eighth consecutive month.

Elsewhere, the single currency was fractionally lower against the pound with EUR/GBP edging down 0.04%, to hit 0.8327.

Also Tuesday, Portuguese Prime Minister Pedro Passos Coelho said he won’t mimic Spain and seek to ease Portugal’s deficit targets to withstand a deepening recession.


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