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Forex - EUR/USD extends losses, tumbling to hit 6-day low

Published 08/10/2010, 10:23 AM
EUR/USD
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EUR/GBP
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Investing.com – The euro extended losses against the U.S. dollar on Tuesday, tumbling to hit a 6-day low, amid speculation that the U.S. Federal Reserve would not announce fresh stimulus measures after its policy meeting.

EUR/USD hit 1.3089 during European afternoon trade, the pair's lowest since August 2; the pair subsequently consolidated at 1.3099, plunging 0.93%.

The pair was likely to find support at 1.2980, the low of July 30 and resistance at 1.3307, Monday's high.

Earlier in the day, the U.S. Bureau of Labor Statistics said that the productivity of U.S. workers fell unexpectedly in the second quarter, falling 0.9%, after declining a revised 3.9% in the first quarter.

Economists had expected productivity to rise by 0.10% in the second quarter.

The report also said unit labor costs rose less-than-expected, rising a seasonally adjusted 0.2% in the second quarter, after falling a revised 3.7% in the first quarter.

Economists had expected unit labor costs to rise 1.4% in the second quarter.

Meanwhile, the euro was up against the pound, with EUR/GBP gaining 0.14% to hit 0.8333.

Later in the day, Federal Reserve policy makers were to meet ahead of the banks interest rate announcement.

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