Investing.com - The euro fell against the dollar in Asian trading on Tuesday after Moody's Investors Service downgraded France's sovereign ratings to Aa1 from Aaa.
In Asian trading on Tuesday, EUR/USD was trading down 0.24% at 1.2783, up from a session low of 1.2765, and off from a high of 1.2814.
The pair was likely to find support at 1.2662, Tuesday’s low, and resistance at 1.2820, Monday's high.
The Moody's move to downgrade France wiped out an otherwise risk-on session that saw the single currency gain in earlier sessions.
"France's long-term economic growth outlook is negatively affected by multiple structural challenges, including its gradual, sustained loss of competitiveness and the long-standing rigidities of its labor, goods and service markets," the ratings agency said in a release.
"France's fiscal outlook is uncertain as a result of its deteriorating economic prospects, both in the short term due to subdued domestic and external demand, and in the longer term due to the structural rigidities noted above."
The country is also less cushioned from external shocks than in the past, Moody's added.
The news wiped out an otherwise bullish session for the single currency.
Strong housing data in the U.S. enticed investors out of the safety of the greenback earlier.
U.S. existing home sales beat expectations in October, while September's figure was revised down, industry data showed on Monday.
In a report, the National Association of Realtors said that existing home sales rose by 2.1% to a seasonally adjusted 4.79 million units in October from September’s revised total of 4.69 million. September existing home sales were initially reported at 4.75 million units.
Analysts had expected U.S. existing home sales to rise to 4.75 million units in October.
The euro, meanwhile, was down against the pound and down against the yen, with EUR/GBP trading down 0.17% at 0.8040, and EUR/JPY trading down 0.34% at 103.97.
Later Tuesday, the eurozone of finance ministers will hold talks in Brussels to discuss financial issues in the bloc.
Meanwhile, Germany is to release official data on producer price inflation.
The U.S. is to publish official data on building permits, an excellent gauge of future construction activity, as well as data on housing starts.
In Asian trading on Tuesday, EUR/USD was trading down 0.24% at 1.2783, up from a session low of 1.2765, and off from a high of 1.2814.
The pair was likely to find support at 1.2662, Tuesday’s low, and resistance at 1.2820, Monday's high.
The Moody's move to downgrade France wiped out an otherwise risk-on session that saw the single currency gain in earlier sessions.
"France's long-term economic growth outlook is negatively affected by multiple structural challenges, including its gradual, sustained loss of competitiveness and the long-standing rigidities of its labor, goods and service markets," the ratings agency said in a release.
"France's fiscal outlook is uncertain as a result of its deteriorating economic prospects, both in the short term due to subdued domestic and external demand, and in the longer term due to the structural rigidities noted above."
The country is also less cushioned from external shocks than in the past, Moody's added.
The news wiped out an otherwise bullish session for the single currency.
Strong housing data in the U.S. enticed investors out of the safety of the greenback earlier.
U.S. existing home sales beat expectations in October, while September's figure was revised down, industry data showed on Monday.
In a report, the National Association of Realtors said that existing home sales rose by 2.1% to a seasonally adjusted 4.79 million units in October from September’s revised total of 4.69 million. September existing home sales were initially reported at 4.75 million units.
Analysts had expected U.S. existing home sales to rise to 4.75 million units in October.
The euro, meanwhile, was down against the pound and down against the yen, with EUR/GBP trading down 0.17% at 0.8040, and EUR/JPY trading down 0.34% at 103.97.
Later Tuesday, the eurozone of finance ministers will hold talks in Brussels to discuss financial issues in the bloc.
Meanwhile, Germany is to release official data on producer price inflation.
The U.S. is to publish official data on building permits, an excellent gauge of future construction activity, as well as data on housing starts.