Investing.com – The euro extended losses against the U.S. dollar on Monday, as euro zone finance ministers prepared to meet in Brussels to discuss steps to address the ongoing sovereign debt crisis in the single currency bloc.
EUR/USD hit 1.3247 during European afternoon trade, a fresh daily low; the pair subsequently consolidated at 1.3289, plunging 0.93%.
The pair was likely to find short-term support at 1.3192, Friday’s low and resistance at 1.3632, the high of November 23.
Ahead of the meeting, Belgian Finance Minister Didier Reynders said the EUR 750 billion bailout fund for euro zone countries should be expanded, breaking ranks with German Chancellor Angela Merkel and French President Nicolas Sarkozy, who last month rejected expanding the fund.
Meanwhile, Reuters reported that an International Monetary Fund report, to be delivered to the meeting in Brussels, said the euro zone should increase the size of the rescue fund and the European Central Bank should significantly boost its bond purchasing program.
Ministers were also to discuss the outlook for Portugal, as the country struggled to quell speculation it will need a bailout.
The euro was also down against the pound, with EUR/GBP shedding 0.35% to hit 0.8475.
On Sunday, Federal Reserve Chairman Ben Bernanke said purchases of Treasuries beyond the USD600 billion announced last month were “certainly possible.”
The Fed chair also said it could be four to five years before the U.S. returned to a more normal jobless rate but that the U.S. economy was not likely to fall back into a recession.
EUR/USD hit 1.3247 during European afternoon trade, a fresh daily low; the pair subsequently consolidated at 1.3289, plunging 0.93%.
The pair was likely to find short-term support at 1.3192, Friday’s low and resistance at 1.3632, the high of November 23.
Ahead of the meeting, Belgian Finance Minister Didier Reynders said the EUR 750 billion bailout fund for euro zone countries should be expanded, breaking ranks with German Chancellor Angela Merkel and French President Nicolas Sarkozy, who last month rejected expanding the fund.
Meanwhile, Reuters reported that an International Monetary Fund report, to be delivered to the meeting in Brussels, said the euro zone should increase the size of the rescue fund and the European Central Bank should significantly boost its bond purchasing program.
Ministers were also to discuss the outlook for Portugal, as the country struggled to quell speculation it will need a bailout.
The euro was also down against the pound, with EUR/GBP shedding 0.35% to hit 0.8475.
On Sunday, Federal Reserve Chairman Ben Bernanke said purchases of Treasuries beyond the USD600 billion announced last month were “certainly possible.”
The Fed chair also said it could be four to five years before the U.S. returned to a more normal jobless rate but that the U.S. economy was not likely to fall back into a recession.