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Forex - EUR/USD edges down, re-approaching 3-month low

Published 05/08/2012, 02:31 AM
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Investing.com - The euro edged lower against the U.S. dollar on Tuesday, re-approaching Monday’s three-month low, as concerns over political uncertainty in Greece and France continued to weigh.

EUR/USD hit 1.3016 during late Asian trade, the session low; the pair subsequently consolidated at 1.3017, shedding 0.26%.

The pair was likely to find support at 1.2954, Monday’s low and a three-month low and resistance at 1.3079, Friday’s low.

Investors remained jittery after weekend election results in Greece and France raised doubts over Europe’s ability implement austerity measures deemed necessary to tackle the debt crisis in the region.

Initial attempts to form a government in Greece failed on Monday, fanning fears that the country may not have a government in place in time to secure its next tranche of international aid next month.

Market participants were also watching developments in France, where Socialist Francois Hollande is to be inaugurated on May 15. Hollande has said he wants to renegotiate the euro zone fiscal pact in order to stimulate growth in the region.

The euro was hovering just above a three-and-a-half year low against the pound, with EUR/GBP slipping 0.12% to hit 0.8049 and was trading close to a two-and-a-half month low against the yen, with EUR/JPY shedding 0.20% to hit 104.05.

Later in the day, Germany was to release official data on industrial production, while European Central Bank President Mario Draghi was due to speak in Frankfurt.

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