Investing.com – The euro extended losses against the U.S. dollar on Tuesday, falling to a fresh 4-day low, as renewed concerns over the health of euro zone banks reignited fears over the region’s economic recovery.
EUR/USD hit 1.2733 during European afternoon trade, the pair’s lowest since September 1; the pair subsequently consolidated at 1.2740, tumbling 1.05%.
The pair is likely to find support at 1.2664, the low of September 1, and resistance at 1.2917, Monday’s high.
Earlier in the day, European Commissioner for Economic and Monetary Affairs, Olli Rehn was cautious over the euro zone’s economic outlook, saying “We are certainly not out of the woods yet".
His comments came after a report from Germany’s Banking Association, which renewed concerns over the health of euro zone banks.
The report said that Germany’s 10 largest banks would need EUR 105 billion of additional capital in order to meet new banking regulations put in place to prevent future financial crises.
Meanwhile, a separate report from the Wall Street Journal highlighted the weakness of July’s euro zone stress tests of major banks. The report said the tests "minimised" their debt risks and "understated some lenders' holdings of potentially risky government debt".
The euro was also down against the pound, with EUR/GBP shedding 0.52% to hit 0.8320.
Earlier in the day, official data showed that German factory orders fell unexpectedly in July.
EUR/USD hit 1.2733 during European afternoon trade, the pair’s lowest since September 1; the pair subsequently consolidated at 1.2740, tumbling 1.05%.
The pair is likely to find support at 1.2664, the low of September 1, and resistance at 1.2917, Monday’s high.
Earlier in the day, European Commissioner for Economic and Monetary Affairs, Olli Rehn was cautious over the euro zone’s economic outlook, saying “We are certainly not out of the woods yet".
His comments came after a report from Germany’s Banking Association, which renewed concerns over the health of euro zone banks.
The report said that Germany’s 10 largest banks would need EUR 105 billion of additional capital in order to meet new banking regulations put in place to prevent future financial crises.
Meanwhile, a separate report from the Wall Street Journal highlighted the weakness of July’s euro zone stress tests of major banks. The report said the tests "minimised" their debt risks and "understated some lenders' holdings of potentially risky government debt".
The euro was also down against the pound, with EUR/GBP shedding 0.52% to hit 0.8320.
Earlier in the day, official data showed that German factory orders fell unexpectedly in July.