Investing.com - The euro extended losses against the U.S. dollar on Thursday, falling to a fresh four-month low as concerns over the health of Spain’s troubled banking sector intensified, while uncertainty over Greece also weighed.
EUR/USD hit 1.2668 during European afternoon trade, the pair’s lowest since January 17; the pair subsequently consolidated at 1.2669, shedding 0.36%.
The pair was likely to find support at 1.2625, the low of January 16 and resistance at 1.2748, the session high.
Shares of Spanish lender Bankia tumbled on the IBEX exchange amid reports that consumers have withdrawn more than EUR1 billion in funds since the bank was nationalized last week.
In addition, speculation swirled that rating’s agency Moody’s was preparing to announce widespread downgrades on Spain’s banking sector later in the session.
Spain’s Treasury successfully auctioned the full targeted amount of EUR2.5 billion at a government bond sale earlier, but the country’s borrowing costs rose sharply, pressured higher by worries over the health of the country’s banking sector.
Meanwhile, fears over the implications of a Greek exit from the euro zone continued as the country prepared for fresh elections next month, which could see anti-austerity parties take power.
On Wednesday, the European Central Bank said it had placed some Greek banks in an emergency liquidity assistance program, as they are severely undercapitalized.
The euro held gains against the broadly weaker pound, with EUR/GBP up 0.14% to trade at 0.8002 but slumped to a three-month low against the yen, with EUR/JPY shedding 0.45% to hit 101.69.
Later Thursday, the U.S. was to produce government data on unemployment claims, as well as a report on manufacturing activity in the Philadelphia area.
EUR/USD hit 1.2668 during European afternoon trade, the pair’s lowest since January 17; the pair subsequently consolidated at 1.2669, shedding 0.36%.
The pair was likely to find support at 1.2625, the low of January 16 and resistance at 1.2748, the session high.
Shares of Spanish lender Bankia tumbled on the IBEX exchange amid reports that consumers have withdrawn more than EUR1 billion in funds since the bank was nationalized last week.
In addition, speculation swirled that rating’s agency Moody’s was preparing to announce widespread downgrades on Spain’s banking sector later in the session.
Spain’s Treasury successfully auctioned the full targeted amount of EUR2.5 billion at a government bond sale earlier, but the country’s borrowing costs rose sharply, pressured higher by worries over the health of the country’s banking sector.
Meanwhile, fears over the implications of a Greek exit from the euro zone continued as the country prepared for fresh elections next month, which could see anti-austerity parties take power.
On Wednesday, the European Central Bank said it had placed some Greek banks in an emergency liquidity assistance program, as they are severely undercapitalized.
The euro held gains against the broadly weaker pound, with EUR/GBP up 0.14% to trade at 0.8002 but slumped to a three-month low against the yen, with EUR/JPY shedding 0.45% to hit 101.69.
Later Thursday, the U.S. was to produce government data on unemployment claims, as well as a report on manufacturing activity in the Philadelphia area.