Investing.com - The euro extended losses against the U.S. dollar on Monday, falling to a four-month low as concerns over the fallout form a possible Greek exit from the euro zone saw investors shun the single currency.
EUR/USD hit 1.2826 during U.S. morning trade, the pair’s lowest since January 18; the pair subsequently consolidated at 1.2831, shedding 0.65%.
The pair was likely to find support at 1.2733, the low of January 18 and resistance at 1.2903, the session high.
Speculation over the possibility of a Greek exit from the euro zone intensified, as talks aimed at forming a coalition government remained at an impasse.
The deadlock fueled fears that a fresh round of elections is becoming inevitable and cast doubts over the country’s ability to uphold its fiscal commitments.
Meanwhile, concerns over the health of Spain’s banking system persisted, pushing the yield on Spanish 10-year bonds to 6.27%, the highest level since December, after an auction of government bonds earlier saw the country’s short-term borrowing costs rise.
Adding to the bearish sentiment, official data showed that industrial production in the euro zone unexpectedly declined 0.3% in March, against expectations for a 0.4% increase, fuelling fears over the health of the region’s economy.
The euro dropped to a three-and-a-half year low against the pound, with EUR/GBP tumbling 0.72% to hit 0.7980 and hit a three-month low against the yen, with EUR/JPY falling 0.92% to hit 102.30.
Elsewhere Monday, European Union finance ministers were set to hold talks in Brussels, while Greece’s president was due to hold last-ditch cross party talks in an attempt to avert fresh elections.
EUR/USD hit 1.2826 during U.S. morning trade, the pair’s lowest since January 18; the pair subsequently consolidated at 1.2831, shedding 0.65%.
The pair was likely to find support at 1.2733, the low of January 18 and resistance at 1.2903, the session high.
Speculation over the possibility of a Greek exit from the euro zone intensified, as talks aimed at forming a coalition government remained at an impasse.
The deadlock fueled fears that a fresh round of elections is becoming inevitable and cast doubts over the country’s ability to uphold its fiscal commitments.
Meanwhile, concerns over the health of Spain’s banking system persisted, pushing the yield on Spanish 10-year bonds to 6.27%, the highest level since December, after an auction of government bonds earlier saw the country’s short-term borrowing costs rise.
Adding to the bearish sentiment, official data showed that industrial production in the euro zone unexpectedly declined 0.3% in March, against expectations for a 0.4% increase, fuelling fears over the health of the region’s economy.
The euro dropped to a three-and-a-half year low against the pound, with EUR/GBP tumbling 0.72% to hit 0.7980 and hit a three-month low against the yen, with EUR/JPY falling 0.92% to hit 102.30.
Elsewhere Monday, European Union finance ministers were set to hold talks in Brussels, while Greece’s president was due to hold last-ditch cross party talks in an attempt to avert fresh elections.