Investing.com - The euro was down against the dollar on Thursday after talks between Greece and multilateral institutions over bailout disbursements hit fresh snags, stoking fears that a messy Greek default remains a very real possibility.
In Asian trading on Thursday, EUR/USD hit 1.3041, down 0.20% and also a session low and off from a high of 1.3067.
The pair was likely to test technical support at 1.3034 and resistance at 1.3079.
European Union leaders have said they fear that Greece doesn't have the political support to push through tough austerity measures the country's parliament approved a few days ago.
Market talk rose that some eurozone countries might even want Greece out of the currency group.
Greece must be given access to a EUR130 billion bailout fund in order to service a EUR14.5 billion bond payment due March 20.
Otherwise, the country risks defaulting in a messy manner, a threat that has been hanging over the market's head for weeks now.
Talk of delaying bailout payments had the market on edge.
"The market is very tired of false promises and that seems to be all we’re getting," said Kathy Lien, director of currency research in New York at the online currency trader GFT Forex, according to Bloomberg.
"It’s still up in the air whether they will get the funds by March 20, so it’s better stay on the sidelines and stay short euro-dollar.”
Meanwhile in Japan, steps taken to weaken the yen sent the dollar climbing, which gave investors further reason to embrace the greenback over the euro.
However, the euro saw some support after the head of China’s central bank said the eurozone debt crisis will be solved, even with China's support.
Furthermore, Germany’s gross domestic product contracted less than expected, shrinking 0.2% in the fourth quarter of 2011, France’s economy expanded 0.2%, also better than expected, while Italy’s shrank by 0.7%, in line with expectations.
In the U.S., the Fed’s policy meeting minutes revealed that monetary policymakers weren't in agreement in whether the economy required additional monetary easing.
The euro, meanwhile, was down against the pound and down against the yen, with EUR/GBP sliding 0.08% to 0.8319 and EUR/JPY falling 0.11% at 102.38.
Later Thursday, the ECB is to release its monthly bulletin, which provides investors with a detailed analysis of current and future economic conditions.
In Canada, official data is to be released on foreign security purchases as well as on manufacturing sales, a leading indicator of economic health.
The U.S. is to publish government data on building permits and housing starts, which will shed light into the health of the housing sector as well as on construction demand.
The U.S. will also release reports on producer price inflation and unemployment claims.
Furthermore, the U.S. will unveil manufacturing data in the Philadelphia area, while Federal Reserve Chairman Ben Bernanke is due to speak as well.
In Asian trading on Thursday, EUR/USD hit 1.3041, down 0.20% and also a session low and off from a high of 1.3067.
The pair was likely to test technical support at 1.3034 and resistance at 1.3079.
European Union leaders have said they fear that Greece doesn't have the political support to push through tough austerity measures the country's parliament approved a few days ago.
Market talk rose that some eurozone countries might even want Greece out of the currency group.
Greece must be given access to a EUR130 billion bailout fund in order to service a EUR14.5 billion bond payment due March 20.
Otherwise, the country risks defaulting in a messy manner, a threat that has been hanging over the market's head for weeks now.
Talk of delaying bailout payments had the market on edge.
"The market is very tired of false promises and that seems to be all we’re getting," said Kathy Lien, director of currency research in New York at the online currency trader GFT Forex, according to Bloomberg.
"It’s still up in the air whether they will get the funds by March 20, so it’s better stay on the sidelines and stay short euro-dollar.”
Meanwhile in Japan, steps taken to weaken the yen sent the dollar climbing, which gave investors further reason to embrace the greenback over the euro.
However, the euro saw some support after the head of China’s central bank said the eurozone debt crisis will be solved, even with China's support.
Furthermore, Germany’s gross domestic product contracted less than expected, shrinking 0.2% in the fourth quarter of 2011, France’s economy expanded 0.2%, also better than expected, while Italy’s shrank by 0.7%, in line with expectations.
In the U.S., the Fed’s policy meeting minutes revealed that monetary policymakers weren't in agreement in whether the economy required additional monetary easing.
The euro, meanwhile, was down against the pound and down against the yen, with EUR/GBP sliding 0.08% to 0.8319 and EUR/JPY falling 0.11% at 102.38.
Later Thursday, the ECB is to release its monthly bulletin, which provides investors with a detailed analysis of current and future economic conditions.
In Canada, official data is to be released on foreign security purchases as well as on manufacturing sales, a leading indicator of economic health.
The U.S. is to publish government data on building permits and housing starts, which will shed light into the health of the housing sector as well as on construction demand.
The U.S. will also release reports on producer price inflation and unemployment claims.
Furthermore, the U.S. will unveil manufacturing data in the Philadelphia area, while Federal Reserve Chairman Ben Bernanke is due to speak as well.