Investing.com - The euro was broadly weaker against its major counterparts on Wednesday, as fears that political uncertainty in Greece could cause the debt crisis in the euro zone to deepen weighed on market sentiment.
During European late morning trade, the euro was down against the U.S. dollar, with EUR/USD shedding 0.28% to hit 1.2969.
The euro remained under broad selling pressure after Alexis Tsipras, the head of Greece’s second-biggest party Syriza, said on Tuesday that Greece's financial aid package is null and void, and called for a moratorium on Greek debt payments.
Tsipras was to hold talks with Greece’s leading political parties later in the day, as attempts to form a government continue, but if talks fail a second round of elections will have to be held.
Investors were also fearful that French president-elect Francois Hollande’s focus on growth rather than austerity measures as a means to tackle the euro zone’s debt crisis could spark tensions with Germany.
Also Wednesday, official data showed that German exports and imports both hit record highs in March, fuelling hopes that the euro zone’s largest economy is weathering the effects of the debt crisis.
The Federal Statistics Office said exports increased by 0.9% to EUR91.8 billion, while imports rose 1.2% to EUR78.1 billion.
The single currency rose against the pound but remained within striking distance of a three-and-a-half year low, with EUR/GBP edging up 0.07% to hit 0.8054.
Industry data showed earlier that retail sales in the U.K. fell 3.3% in April after a 1.3% rise the previous month.
The euro was hovering close to a two-and-a-half month low against the yen, with EUR/JPY losing 0.52% to hit 103.34, but remained little changed against the Swiss franc EUR/CHF dipping 0.01% to hit 1.2010.
Elsewhere, the shared currency was higher against the Canadian, Australian and New Zealand dollars, with EUR/CAD adding 0.16% to hit 1.3010, EUR/AUD up 0.27% to hit 1.2886 and EUR/NZD easing up 0.02% to hit 1.6513.
Sentiment on the Australian dollar was hit earlier after Australia’s Prime Minister Julia Gillard said that the government will cut spending for the first time in 42 years, ending four years of budget deficits and giving the central bank flexibility to lower interest rates.
The comments came after official data showed on Tuesday that Australia’s trade deficit more than doubled in March, as commodity exports declined for a third successive month.
Later in the day, the U.S. was to produce government data on crude oil stockpiles. A 10-year U.S. government bond auction was also scheduled.
During European late morning trade, the euro was down against the U.S. dollar, with EUR/USD shedding 0.28% to hit 1.2969.
The euro remained under broad selling pressure after Alexis Tsipras, the head of Greece’s second-biggest party Syriza, said on Tuesday that Greece's financial aid package is null and void, and called for a moratorium on Greek debt payments.
Tsipras was to hold talks with Greece’s leading political parties later in the day, as attempts to form a government continue, but if talks fail a second round of elections will have to be held.
Investors were also fearful that French president-elect Francois Hollande’s focus on growth rather than austerity measures as a means to tackle the euro zone’s debt crisis could spark tensions with Germany.
Also Wednesday, official data showed that German exports and imports both hit record highs in March, fuelling hopes that the euro zone’s largest economy is weathering the effects of the debt crisis.
The Federal Statistics Office said exports increased by 0.9% to EUR91.8 billion, while imports rose 1.2% to EUR78.1 billion.
The single currency rose against the pound but remained within striking distance of a three-and-a-half year low, with EUR/GBP edging up 0.07% to hit 0.8054.
Industry data showed earlier that retail sales in the U.K. fell 3.3% in April after a 1.3% rise the previous month.
The euro was hovering close to a two-and-a-half month low against the yen, with EUR/JPY losing 0.52% to hit 103.34, but remained little changed against the Swiss franc EUR/CHF dipping 0.01% to hit 1.2010.
Elsewhere, the shared currency was higher against the Canadian, Australian and New Zealand dollars, with EUR/CAD adding 0.16% to hit 1.3010, EUR/AUD up 0.27% to hit 1.2886 and EUR/NZD easing up 0.02% to hit 1.6513.
Sentiment on the Australian dollar was hit earlier after Australia’s Prime Minister Julia Gillard said that the government will cut spending for the first time in 42 years, ending four years of budget deficits and giving the central bank flexibility to lower interest rates.
The comments came after official data showed on Tuesday that Australia’s trade deficit more than doubled in March, as commodity exports declined for a third successive month.
Later in the day, the U.S. was to produce government data on crude oil stockpiles. A 10-year U.S. government bond auction was also scheduled.