Investing.com – The euro extended early losses against the U.S. dollar on Tuesday, breaking below a key support level at USD1.3000, as concerns about the spread of sovereign debt troubles in the euro zone hit the single currency.
EUR/USD hit 1.2982 during European morning trade, the pair’s lowest since September 16; the pair subsequently consolidated at 1.3009, tumbling 0.86%.
The pair was likely to find support at 1.2828, the low of September 14 and resistance at 1.3301, Monday’s high.
Earlier in the day, the cost of insuring Spanish and Italian sovereign debt against default rose to hit the highest levels since the launch of the single currency, reflecting a lack of confidence that the deal to bailout Ireland would contain the euro zone's debt crisis.
Also Tuesday, official data showed that the number of unemployed people in Germany declined less-than-expected in November while the rate of unemployment in the euro zone remained unchanged at 10.1% in October.
Meanwhile, preliminary data showed that consumer price inflation in the euro zone rose in line with expectations in November.
The euro was also down against the pound, with EUR/GBP shedding 0.57% to hit 0.8379.
Later Tuesday, the U.S. was to publish industry data on house prices, as well as data on consumer confidence. The country was also to release an index of manufacturing growth in the Chicago area, while Federal Reserve Chairman, Ben Bernanke was to speak at a public engagement.
EUR/USD hit 1.2982 during European morning trade, the pair’s lowest since September 16; the pair subsequently consolidated at 1.3009, tumbling 0.86%.
The pair was likely to find support at 1.2828, the low of September 14 and resistance at 1.3301, Monday’s high.
Earlier in the day, the cost of insuring Spanish and Italian sovereign debt against default rose to hit the highest levels since the launch of the single currency, reflecting a lack of confidence that the deal to bailout Ireland would contain the euro zone's debt crisis.
Also Tuesday, official data showed that the number of unemployed people in Germany declined less-than-expected in November while the rate of unemployment in the euro zone remained unchanged at 10.1% in October.
Meanwhile, preliminary data showed that consumer price inflation in the euro zone rose in line with expectations in November.
The euro was also down against the pound, with EUR/GBP shedding 0.57% to hit 0.8379.
Later Tuesday, the U.S. was to publish industry data on house prices, as well as data on consumer confidence. The country was also to release an index of manufacturing growth in the Chicago area, while Federal Reserve Chairman, Ben Bernanke was to speak at a public engagement.