Investing.com - The euro fell against the U.S. dollar on Monday after Standard & Poors downgraded France's credit rating one notch and cut eight other euro zone countries.
EUR/USD hit a low of 1.2626 during U.S. trade. The pair is off a high of 1.2688 and is currently trading at 1.2677 down 0.01%.
The pair was likely to find support at 1.2623, Friday's low and technical resistance exists at 1.2789, the January 11th high.
The single currency came under pressure when Standard & Poor's downgraded France to AA+ from AAA with a negative outlook on Friday.
The rating agency also slashed Cyprus, Portugal, Italy and Spain two levels. Long term credit ratings were also lowered on Austria, Malta, Slovakia, and Slovenia. However, Germany, Ireland, Finland, Belgium, Estonia, Netherlands, and Luxembourg had their rating affirmed by S&P.
However, the debt market appeared to shrug off the French downgrade at the sale of 51 week treasury bills. French borrowing costs dropped as the country sold eur1.895 billion of one year notes at a yield of 0.406%, down from 0.454% on January 9th.
Lee Hardman of Bank of Tokyo-Mitsubishi stated to Bloomberg, "The rating downgrade provides more evidence that the euro zone debt crisis has a lot further to run."
Greek officials will reconvene with creditors on January 18th after the talks stalled last week increasing default fears.
Euro future shorts have hit another record indicating massive negative euro sentiment among traders.
The Euro traded declined against the pound with EUR/GBP falling 0.10% to 0.8270.
Markets in the U.S. remain closed for a national holiday and investors await Mario Draghi's testimony before the European Parliament's Economic and Monetary affairs Committee.
EUR/USD hit a low of 1.2626 during U.S. trade. The pair is off a high of 1.2688 and is currently trading at 1.2677 down 0.01%.
The pair was likely to find support at 1.2623, Friday's low and technical resistance exists at 1.2789, the January 11th high.
The single currency came under pressure when Standard & Poor's downgraded France to AA+ from AAA with a negative outlook on Friday.
The rating agency also slashed Cyprus, Portugal, Italy and Spain two levels. Long term credit ratings were also lowered on Austria, Malta, Slovakia, and Slovenia. However, Germany, Ireland, Finland, Belgium, Estonia, Netherlands, and Luxembourg had their rating affirmed by S&P.
However, the debt market appeared to shrug off the French downgrade at the sale of 51 week treasury bills. French borrowing costs dropped as the country sold eur1.895 billion of one year notes at a yield of 0.406%, down from 0.454% on January 9th.
Lee Hardman of Bank of Tokyo-Mitsubishi stated to Bloomberg, "The rating downgrade provides more evidence that the euro zone debt crisis has a lot further to run."
Greek officials will reconvene with creditors on January 18th after the talks stalled last week increasing default fears.
Euro future shorts have hit another record indicating massive negative euro sentiment among traders.
The Euro traded declined against the pound with EUR/GBP falling 0.10% to 0.8270.
Markets in the U.S. remain closed for a national holiday and investors await Mario Draghi's testimony before the European Parliament's Economic and Monetary affairs Committee.