Forex - EUR/USD falls as dollar regains ground

Published 12/06/2010, 02:30 AM
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EUR/GBP
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Investing.com – The euro was down against the U.S. dollar on Monday, slipping to a daily low as the dollar regained some ground after Friday’s weak jobs data and ahead of a meeting of European finance ministers.

EUR/USD hit 1.3332 during late Asian trade, the daily low; the pair subsequently consolidated at 1.3348, shedding 0.49%.

The pair was likely to find support at 1.3192, Friday’s low and resistance at 1.3632, the high of November 23.

On Friday, the U.S. Department of Labor reported that the nation’s unemployment rate rose to 9.8% in November from 9.6% in October, defying expectations for an unchanged reading.

On Sunday, Federal Reserve Chairman, Ben Bernanke, said on “60 Minutes” it could be four to five years before the U.S. returned to a more normal jobless rate but that a double-dip recession was not likely.

He also indicated that the Fed could commit more money beyond the USD 600 billion in asset purchases announced last month to provide a further boost to the economy.

The euro was also down against the pound, with EUR/GBP shedding 0.24% to hit 0.8484.

Later Monday, euro zone finance ministers were due to meet. The ministers faced pressure to increase the size of a EUR 750 billion safety net for indebted euro members, in order to arrest sovereign debt contagion in the single currency bloc.

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