Investing.com - The euro extended losses against the U.S. dollar on Thursday, falling to a fresh three-week low as ongoing concerns over a second bailout deal for Greece continued to weigh on the single currency.
EUR/USD hit 1.2984 during European early afternoon trade, the pair’s lowest since January 25; the pair subsequently consolidated at 1.2998, sliding 0.53%.
The pair was likely to find support at 1.2874, the low of January 23 and resistance at 1.3120, the high of January 25.
The euro came under pressure after a teleconference of euro zone finance ministers on Wednesday failed to reach a decision on Greece's new bailout and private-debt restructuring issues.
Following the talks, Eurogroup President Jean Claude Juncker said he was confident that finance ministers will make a final decision at a meeting in Brussels on Monday.
European Union officials are believed to be looking at delaying all or part of Greece's bailout until after a general election in the country, which is expected to take place in April.
Officials are examining the possibility of extending a bridging loan to Athens, which would allow Greece to meet EUR14.4 billion in repayments which come due on March 20, avoiding a default.
Sentiment was also hit after ratings agency Moody's warned that it may cut the credit ratings of 114 banks in 16 countries across Europe, citing banks' vulnerability to the sovereign debt crisis in the euro zone.
Meanwhile, the European Central Bank said in its monthly bulletin that it expects the euro zone economy to contract this year by 0.1%, slashing its projections for 0.8% growth.
The single currency was also sharply lower against the pound with EUR/GBP declining 0.42%, to hit 0.8291.
Later in the day, the U.S. was to publish official data on building permits and on housing starts, as well as reports on producer price inflation and unemployment claims. Federal Reserve Chairman Ben Bernanke was also due to speak.
EUR/USD hit 1.2984 during European early afternoon trade, the pair’s lowest since January 25; the pair subsequently consolidated at 1.2998, sliding 0.53%.
The pair was likely to find support at 1.2874, the low of January 23 and resistance at 1.3120, the high of January 25.
The euro came under pressure after a teleconference of euro zone finance ministers on Wednesday failed to reach a decision on Greece's new bailout and private-debt restructuring issues.
Following the talks, Eurogroup President Jean Claude Juncker said he was confident that finance ministers will make a final decision at a meeting in Brussels on Monday.
European Union officials are believed to be looking at delaying all or part of Greece's bailout until after a general election in the country, which is expected to take place in April.
Officials are examining the possibility of extending a bridging loan to Athens, which would allow Greece to meet EUR14.4 billion in repayments which come due on March 20, avoiding a default.
Sentiment was also hit after ratings agency Moody's warned that it may cut the credit ratings of 114 banks in 16 countries across Europe, citing banks' vulnerability to the sovereign debt crisis in the euro zone.
Meanwhile, the European Central Bank said in its monthly bulletin that it expects the euro zone economy to contract this year by 0.1%, slashing its projections for 0.8% growth.
The single currency was also sharply lower against the pound with EUR/GBP declining 0.42%, to hit 0.8291.
Later in the day, the U.S. was to publish official data on building permits and on housing starts, as well as reports on producer price inflation and unemployment claims. Federal Reserve Chairman Ben Bernanke was also due to speak.