Investing.com - The euro edged lower against the U.S. dollar on Tuesday, as uncertainty over Spain and Greece weighed, while worries over the outlook for global growth also supported dollar demand.
EUR/USD hit 1.2888 during European morning trade, the pair’s lowest since September 13; the pair subsequently consolidated at 1.2913, down 0.12%.
The pair was likely to find near-term support at 1.2816, the low of September 12 and resistance at 1.2989, Monday's high.
The euro's losses were limited following the release of encouraging German consumer confidence data.
The forward looking German GfK consumer sentiment index was unchanged at 5.9 for October, in line with expectations. The economic expectations component of the index rose to minus 17.2 points in September from minus 18.9 points in August.
But investors remained jittery amid uncertainty over whether Spain will request a full scale sovereign bailout.
On Thursday Madrid is to present its draft budget for next year and announce structural reforms, while the results of bank stress tests are due on Friday. In addition, ratings agency Moody’s is expected to complete a ratings review on Spain later this week.
The euro also lost ground against the pound and the yen, with EUR/GBP down 0.34% to 0.7944 and EUR/JPY dropping 0.17% to 100.48.
Later in the day, European Central Bank President Mario Draghi was to meet with German Chancellor Angela Merkel in Berlin.
EUR/USD hit 1.2888 during European morning trade, the pair’s lowest since September 13; the pair subsequently consolidated at 1.2913, down 0.12%.
The pair was likely to find near-term support at 1.2816, the low of September 12 and resistance at 1.2989, Monday's high.
The euro's losses were limited following the release of encouraging German consumer confidence data.
The forward looking German GfK consumer sentiment index was unchanged at 5.9 for October, in line with expectations. The economic expectations component of the index rose to minus 17.2 points in September from minus 18.9 points in August.
But investors remained jittery amid uncertainty over whether Spain will request a full scale sovereign bailout.
On Thursday Madrid is to present its draft budget for next year and announce structural reforms, while the results of bank stress tests are due on Friday. In addition, ratings agency Moody’s is expected to complete a ratings review on Spain later this week.
The euro also lost ground against the pound and the yen, with EUR/GBP down 0.34% to 0.7944 and EUR/JPY dropping 0.17% to 100.48.
Later in the day, European Central Bank President Mario Draghi was to meet with German Chancellor Angela Merkel in Berlin.