Forex - EUR/USD falls on Moody's downgrades

Published 02/13/2012, 07:17 PM
Updated 02/13/2012, 07:21 PM
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Investing.com - The euro fell against the dollar Tuesday after U.S. ratings agency Moody's downgraded Portugal, Italy and Spain and slapped negative outlooks on the U.K., Austria and France.

In Asian trading on Tuesday, EUR/USD hit 1.3154, down 0.25%, firming from a session low of 1.3146 and off from a high of 1.3193.

The pair was likely to find support at 1.3090, last Tuesday's low, and resistance at 1.3240, Monday's high.

Spirits were up just a day earlier after Greek lawmakers summoned the political will to vote in favor of accepting austerity measures in return for bailout money.

The news sent the euro and stock markets rising, although the Moody's moves dampened spirits in Asian currency markets on Tuesday.

The euro, meanwhile, was up against the pound and down against the yen, with EUR/GBP rising 0.06% to 0.8369 and EUR/JPY falling 0.18% at 102.11.

Later Tuesday, the Bank of Japan is tentatively scheduled to give a press conference to discuss monetary policy.

French nonfarm payroll numbers are due out, while in Germany, the German ZEW Economic Sentiment index will be released.

Market watchers will keep an eye on eurozone industrial output figures and even more so on U.K. inflation data.

In the U.S., retails sales, import price figures and business inventory data will emerge, while Treasury Secretary Timothy Geithner is set to speak.





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