Investing.com – The euro fell against the U.S. dollar on Wednesday, after Moody’s Investor Services downgraded the credit ratings of two of France’s largest banks, adding to fears over the deepening debt crisis in the single currency bloc.
EUR/USD hit 1.3592 during late Asian trade, the daily low; the pair subsequently consolidated at 1.3618, shedding 0.45%.
The pair was likely to find support at 1.3493, Monday’s low and a seven-month low and resistance at 1.3738, Tuesday’s high.
Ratings agency Moody’s downgraded the long term debt rating of top French lenders Societe Generale and Credit Agricole, citing their exposure to Greek debt and said it was extending its review of BNP Paribas.
Elsewhere, Italy saw borrowing costs surge to the highest level since the introduction of the single currency in 1999 on Tuesday, as uncertainty over the introduction of austerity measures rattled investors.
Later in the day, Greek Prime Minister George Papandreou was to hold a conference call with German Chancellor Angela Merkel and French President Nicolas Sarkozy to discuss developments in Greece.
The euro was also down against the pound, with EUR/GBP slipping 0.11% to hit 0.8656.
Also Wednesday, the euro zone was to publish official data on industrial production, while the U.S. was to release government data on producer price inflation and retail sales. Meanwhile, U.S. Treasury Secretary Timothy Geithner was to speak.
EUR/USD hit 1.3592 during late Asian trade, the daily low; the pair subsequently consolidated at 1.3618, shedding 0.45%.
The pair was likely to find support at 1.3493, Monday’s low and a seven-month low and resistance at 1.3738, Tuesday’s high.
Ratings agency Moody’s downgraded the long term debt rating of top French lenders Societe Generale and Credit Agricole, citing their exposure to Greek debt and said it was extending its review of BNP Paribas.
Elsewhere, Italy saw borrowing costs surge to the highest level since the introduction of the single currency in 1999 on Tuesday, as uncertainty over the introduction of austerity measures rattled investors.
Later in the day, Greek Prime Minister George Papandreou was to hold a conference call with German Chancellor Angela Merkel and French President Nicolas Sarkozy to discuss developments in Greece.
The euro was also down against the pound, with EUR/GBP slipping 0.11% to hit 0.8656.
Also Wednesday, the euro zone was to publish official data on industrial production, while the U.S. was to release government data on producer price inflation and retail sales. Meanwhile, U.S. Treasury Secretary Timothy Geithner was to speak.