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Forex - EUR/USD extends losses as sovereign debt fears weigh

Published 11/15/2010, 06:52 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 Monday, falling to a fresh daily low as the debt issues of peripheral euro-zone countries continued to weigh on the single currency.

EUR/USD hit 1.3603 during European morning trade, a fresh daily low; the pair subsequently consolidated at 1.3619, shedding 0.52%.

The pair was likely to find support at 1.3559, the low of September 30 and resistance at 1.3973, the high of November 9.

Over the weekend Ireland came under pressure to seek assistance from the European Financial Stability Facility, a fund set up after the Greek debt crisis, to help prevent yield spreads for euro-zone debtors like Spain and Portugal from widening further.

However Ireland refused and Irish government officials have repeatedly insisted that the country can survive without assistance from the European Union.

Elsewhere, Greek Prime Minister George Papandreou suggested that his country might seek to extend repayment of its EU loan program while Portugal's foreign minister Luis Amado said Portugal faces "a scenario of exit from the euro zone" if his country failed to pass a suitable fiscal consolidation package.

The euro was also down against the pound, with EUR/GBP shedding 0.15% to hit 0.8482.

Earlier in the day, official data showed that the euro zone’s trade balance posted a larger-than-expected surplus in September as export growth outpaced the rise in imports year-on-year.

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