Investing.com – The euro edged cautiously higher against the U.S. dollar on Tuesday, rising to a daily high, after Moody’s ratings agency said that it had put Irelands Aa2 debt rating under review, pending a further downgrade.
EUR/USD hit 1.3720 during early European trade, a daily high; the pair subsequently consolidated at 1.3711, gaining 0.17%.
The pair was likely to find support at 1.3618, Friday's low and resistance at 1.3808, Monday’s high.
Last week, Ireland’s central bank said that it would cost EUR 50 billion to bail out the country’s banking system. That would push Ireland’s budget deficit to 32% of GDP, the highest for any member of the euro zone since the the launch of the single currency in 1999.
Dietmar Hornung, Moody's lead sovereign analyst for Ireland said "Ireland's ability to preserve government financial strength faces increased uncertainty as a result of three main drivers, which together would further increase its debt and aggravate its debt affordability”.
Meanwhile, the euro was up against the pound, with EUR/GBP gaining 0.25% to hit 0.8666.
Later in the day, the euro zone was to release official data on retail sales.
EUR/USD hit 1.3720 during early European trade, a daily high; the pair subsequently consolidated at 1.3711, gaining 0.17%.
The pair was likely to find support at 1.3618, Friday's low and resistance at 1.3808, Monday’s high.
Last week, Ireland’s central bank said that it would cost EUR 50 billion to bail out the country’s banking system. That would push Ireland’s budget deficit to 32% of GDP, the highest for any member of the euro zone since the the launch of the single currency in 1999.
Dietmar Hornung, Moody's lead sovereign analyst for Ireland said "Ireland's ability to preserve government financial strength faces increased uncertainty as a result of three main drivers, which together would further increase its debt and aggravate its debt affordability”.
Meanwhile, the euro was up against the pound, with EUR/GBP gaining 0.25% to hit 0.8666.
Later in the day, the euro zone was to release official data on retail sales.