Investing.com – The euro extended losses against the U.S. dollar on Monday, tumbling more than 1%, as European officials appeared divided over what steps to take in order to halt the sovereign-debt crisis in the single currency bloc.
EUR/USD hit 1.3251 during European morning trade, a fresh daily low; the pair subsequently consolidated at 1.3253, plunging 1.20%.
The pair was likely to find short-term support at 1.3192, Friday’s low and resistance at 1.3632, the high of November 23.
On Friday, Belgian Finance Minister Didier Reynders said the EUR 750 billion bailout fund for euro zone countries should be expanded, breaking ranks with German Chancellor Angela Merkel and French President Nicolas Sarkozy, who last month rejected expanding the fund.
Later in the day, euro zone finance ministers were due to meet in Brussels to discuss the outlook for Portugal, which was struggling to quell speculation it will need a bailout.
The euro was also down against the pound, with EUR/GBP shedding 0.52% to hit 0.8461.
Elsewhere, in an interview with CBS's "60 Minutes" aired Sunday, Federal Reserve Chairman Ben Bernanke said it could be four to five years before the U.S. returned to a more normal jobless rate but that the U.S. economy was not likely to fall back into a recession.
EUR/USD hit 1.3251 during European morning trade, a fresh daily low; the pair subsequently consolidated at 1.3253, plunging 1.20%.
The pair was likely to find short-term support at 1.3192, Friday’s low and resistance at 1.3632, the high of November 23.
On Friday, Belgian Finance Minister Didier Reynders said the EUR 750 billion bailout fund for euro zone countries should be expanded, breaking ranks with German Chancellor Angela Merkel and French President Nicolas Sarkozy, who last month rejected expanding the fund.
Later in the day, euro zone finance ministers were due to meet in Brussels to discuss the outlook for Portugal, which was struggling to quell speculation it will need a bailout.
The euro was also down against the pound, with EUR/GBP shedding 0.52% to hit 0.8461.
Elsewhere, in an interview with CBS's "60 Minutes" aired Sunday, Federal Reserve Chairman Ben Bernanke said it could be four to five years before the U.S. returned to a more normal jobless rate but that the U.S. economy was not likely to fall back into a recession.