Investing.com - The euro fell against the dollar Friday as demand for the greenback continued strong in wake of Federal Reserve Chairman Ben Bernanke's comments suggesting monetary stimulus measures won't be needed for the U.S. economy at this time.
In U.S. trading on Friday, EUR/USD hit 1.3193, down 0.90%, gaining from a session low of 1.3187 and off from a high of 1.3333.
The pair was likely to test technical support at 1.3172 and resistance at 1.3229.
Fears that Greece's debt restructuring will trigger credit default swap payments to kick in sent the pair falling, offsetting euro zone producer price inflation, which climbed more-than-expected to a seasonally adjusted 0.7% in February, from minus 0.2% in January.
Market watchers were expecting a 0.5% gain.
The London-based International Swaps and Derivatives Association said credit default swap payments were not warranted under terms of the haircut private creditors accepted from Greece amid restructuring.
Fears of such weakened the euro earlier.
Meanwhile Fed Chairman Ben Bernanke recently suggested quantitative easing would not be necessary for U.S. recovery at present, as the U.S. economy continues to show signs of improvement.
Quantitative easing, asset purchase banks carried out by the Fed, weakens the dollar.
The euro was down against the pound and down against the yen, with EUR/GBP down 0.18% and trading at 0.8328, and EUR/JPY down 0.18% at 107.78.
On Monday, euro zone retail sales and service sector data are due out.
In the U.S. pending home sales will hit the wire.
In U.S. trading on Friday, EUR/USD hit 1.3193, down 0.90%, gaining from a session low of 1.3187 and off from a high of 1.3333.
The pair was likely to test technical support at 1.3172 and resistance at 1.3229.
Fears that Greece's debt restructuring will trigger credit default swap payments to kick in sent the pair falling, offsetting euro zone producer price inflation, which climbed more-than-expected to a seasonally adjusted 0.7% in February, from minus 0.2% in January.
Market watchers were expecting a 0.5% gain.
The London-based International Swaps and Derivatives Association said credit default swap payments were not warranted under terms of the haircut private creditors accepted from Greece amid restructuring.
Fears of such weakened the euro earlier.
Meanwhile Fed Chairman Ben Bernanke recently suggested quantitative easing would not be necessary for U.S. recovery at present, as the U.S. economy continues to show signs of improvement.
Quantitative easing, asset purchase banks carried out by the Fed, weakens the dollar.
The euro was down against the pound and down against the yen, with EUR/GBP down 0.18% and trading at 0.8328, and EUR/JPY down 0.18% at 107.78.
On Monday, euro zone retail sales and service sector data are due out.
In the U.S. pending home sales will hit the wire.