Investing.com - The euro traded lower against the U.S. dollar during Monday’s Asian session after the first and only debate of the current German election cycle that will decide who the country’s next chancellor will be.
In Asian trading Monday, EUR/USD fell 0.14% to 1.3201. The pair was likely to find support at 1.3166, the low from July 25, and resistance at 1.3398, Wednesday's high.
Last Friday, the euro dipped to five-week lows against the dollar, hitting session lows of 1.3174, before paring back some losses to settle at 1.3218, 0.17% lower for the day and ending the week down 1.19%.
The euro came under pressure after official data on Friday showed the number of unemployed people in the euro zone fell by 15,000 in July, but the unemployment rate remained unchanged at a record high 12.1%.
Over the weekend, German Chancellor Angela Merkel and challenger Peer Steinbrueck engaged in their first and only debate ahead of that country’s September 22 elections. Steinbrueck, well behind Merkel in recent polls, has been critical of Merkel’s role in various bailout packages given to financially struggling euro zone countries.
It is expected that Greece will need a third bailout package next year. As Germany is the largest euro zone economy, it is also the largest contributor of assistance to countries in the region needing assistance.
Elsewhere, EUR/JPY rose 0.25% to 130.07 after the Ministry of Finance said that Japanese capital spending was 0% in the second quarter following a first-quarter contraction of 3.9%. Economists expected a second-quarter contraction of 2.6%.
EUR/GBP fell 0.22% to 0.8508. U.S. markets are close Monday for a public holiday.
In Asian trading Monday, EUR/USD fell 0.14% to 1.3201. The pair was likely to find support at 1.3166, the low from July 25, and resistance at 1.3398, Wednesday's high.
Last Friday, the euro dipped to five-week lows against the dollar, hitting session lows of 1.3174, before paring back some losses to settle at 1.3218, 0.17% lower for the day and ending the week down 1.19%.
The euro came under pressure after official data on Friday showed the number of unemployed people in the euro zone fell by 15,000 in July, but the unemployment rate remained unchanged at a record high 12.1%.
Over the weekend, German Chancellor Angela Merkel and challenger Peer Steinbrueck engaged in their first and only debate ahead of that country’s September 22 elections. Steinbrueck, well behind Merkel in recent polls, has been critical of Merkel’s role in various bailout packages given to financially struggling euro zone countries.
It is expected that Greece will need a third bailout package next year. As Germany is the largest euro zone economy, it is also the largest contributor of assistance to countries in the region needing assistance.
Elsewhere, EUR/JPY rose 0.25% to 130.07 after the Ministry of Finance said that Japanese capital spending was 0% in the second quarter following a first-quarter contraction of 3.9%. Economists expected a second-quarter contraction of 2.6%.
EUR/GBP fell 0.22% to 0.8508. U.S. markets are close Monday for a public holiday.