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Forex - EUR/USD erases losses but gains capped amid debt fears

Published 09/28/2010, 07:08 AM
EUR/USD
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EUR/GBP
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Investing.com – The euro erased losses against the U.S. dollar on Tuesday, but gains were limited amid renewed fears over euro zone debt rating downgrades.

EUR/USD retreated from 1.3380, the daily low, to hit 1.3460 during European afternoon trade, gaining 0.05%.

The pair was likely to find support at 1.3285, last Friday's low and resistance at 1.3506, Monday's high.

Earlier in the day, Spanish newspaper Expansion reported that Moody's Investor Services is to reduce Spain's triple-A credit rating later this week. Moody's is the last of the major credit agencies to still have a top-grade rating for Spain.

Also Tuesday, Irish media reported that ratings agency Standard & Poor's may make further cuts to its rating for Anglo Irish Bank if the lender needs more than a EUR35 billion recapitalization from the Irish government. S&P had already cut its rating of the lender by three notches.

The euro was also down against the pound, with EUR/GBP shedding 0.16% to hit 0.8486.

Also Tuesday, the market research group Gfk said its index of Germany's consumer climate rose more-than-expected in September, climbing to its highest level since October 2007.

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