Investing.com - The euro slid to its lowest level in nearly four months against the U.S. dollar on Monday, as ongoing political turmoil in Greece fuelled fears that another round of elections is inevitable.
EUR/USD hit 1.2879 during late Asian trade, the pair’s lowest since January 23; the pair subsequently consolidated at 1.2892, slipping 0.19%.
The pair was likely to find support at 1.2770, the low of January 5 and resistance at 1.2903, the session high.
On Sunday, Alexis Tsipras, the head of Greece’s largest anti-bailout party Syriza, rejected an invitation from the country’s president to attend last-ditch cross party talks aimed at forming a coalition government, fuelling fears that a fresh round of elections is unavoidable.
Parties have been unable to reach an agreement over whether Greece should continue to implement unpopular austerity measures demanded by the country’s international creditors in exchange for its EUR130 billion bailout.
Adding to the negative sentiment, ratings agency Fitch warned Friday that it would place the sovereign ratings of all euro zone members on review pending possible downgrades, if Greece was to exit the euro zone as a result of its current crisis.
The euro was lower against the pound and the yen, with EUR/GBP slipping 0.15% to hit 0.8025 and EUR/JPY dipping 0.05% to hit 103.19.
Later Monday, the euro zone was to release official data on industrial production, while Italy was to hold an auction of 10-year government bonds. In addition, European Union finance ministers were to hold talks in Brussels.
EUR/USD hit 1.2879 during late Asian trade, the pair’s lowest since January 23; the pair subsequently consolidated at 1.2892, slipping 0.19%.
The pair was likely to find support at 1.2770, the low of January 5 and resistance at 1.2903, the session high.
On Sunday, Alexis Tsipras, the head of Greece’s largest anti-bailout party Syriza, rejected an invitation from the country’s president to attend last-ditch cross party talks aimed at forming a coalition government, fuelling fears that a fresh round of elections is unavoidable.
Parties have been unable to reach an agreement over whether Greece should continue to implement unpopular austerity measures demanded by the country’s international creditors in exchange for its EUR130 billion bailout.
Adding to the negative sentiment, ratings agency Fitch warned Friday that it would place the sovereign ratings of all euro zone members on review pending possible downgrades, if Greece was to exit the euro zone as a result of its current crisis.
The euro was lower against the pound and the yen, with EUR/GBP slipping 0.15% to hit 0.8025 and EUR/JPY dipping 0.05% to hit 103.19.
Later Monday, the euro zone was to release official data on industrial production, while Italy was to hold an auction of 10-year government bonds. In addition, European Union finance ministers were to hold talks in Brussels.