Investing.com - The euro fell against the dollar on Monday as Greece's political parties over the weekend failed to agree on a coalition government, making a second round of elections increasingly likely.
In Asian trading on Monday, EUR/USD was trading down 0.16% at 1.2896, up from a session low of 1.2882, and off from a high of 1.2904.
The pair was likely to test support at 1.2882, the earlier low, and resistance at 1.3060, the high of May 8.
Greek political parties have expressed a desire to stick to the euro, but doubts of doing so continue to build after President Karolos Papoulias failed over the weekend to patch together a coalition.
Conservative political party New Democracy, left-wing Syriza, socialist PASOK and the smaller Democratic Left have been trying to create a government after May 6 parliamentary elections failed to give any one bloc enough backing to create a government, but to no avail.
Greece has agreed to tough austerity measures in exchange for multilateral bailout assistance, although widespread anger at such policies including layoffs, tax hikes and public spending cuts resulted in factional parliamentary results.
Failure to decide on a coalition government soon will force a second round of elections, seen by many as a first step towards a Greek exit from the eurozone, which had the euro weakening in early Asian trading.
The euro, meanwhile, was down against the pound and down against the yen, with EUR/GBP down 0.17% at 0.8024 and EUR/JPY trading down 0.14% at 103.12.
Later Monday, the eurozone was to release oficial data on industrial production, while Italy was to hold an auction of 10-year government bonds.
The U.S. was to produce a report on mortgage delinquencies, a key signal of the housing market, which has continued to lag during the country's recovery.
In Asian trading on Monday, EUR/USD was trading down 0.16% at 1.2896, up from a session low of 1.2882, and off from a high of 1.2904.
The pair was likely to test support at 1.2882, the earlier low, and resistance at 1.3060, the high of May 8.
Greek political parties have expressed a desire to stick to the euro, but doubts of doing so continue to build after President Karolos Papoulias failed over the weekend to patch together a coalition.
Conservative political party New Democracy, left-wing Syriza, socialist PASOK and the smaller Democratic Left have been trying to create a government after May 6 parliamentary elections failed to give any one bloc enough backing to create a government, but to no avail.
Greece has agreed to tough austerity measures in exchange for multilateral bailout assistance, although widespread anger at such policies including layoffs, tax hikes and public spending cuts resulted in factional parliamentary results.
Failure to decide on a coalition government soon will force a second round of elections, seen by many as a first step towards a Greek exit from the eurozone, which had the euro weakening in early Asian trading.
The euro, meanwhile, was down against the pound and down against the yen, with EUR/GBP down 0.17% at 0.8024 and EUR/JPY trading down 0.14% at 103.12.
Later Monday, the eurozone was to release oficial data on industrial production, while Italy was to hold an auction of 10-year government bonds.
The U.S. was to produce a report on mortgage delinquencies, a key signal of the housing market, which has continued to lag during the country's recovery.