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Forex - EUR/USD falls to 6-day low after downbeat Weber comments

Published 09/08/2010, 05:11 AM
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Investing.com – The euro was down against the U.S. dollar on Wednesday, falling to a fresh 6-day low, as downbeat comments from Deutsche Bundesbank President Axel Weber further dampened sentiment on the euro. 

EUR/USD hit 1.2658 during European morning trade, the pair’s lowest since August 31; the pair subsequently consolidated at 1.2675, shedding 0.05%.

The pair is likely to find support at 1.2625, the low of August 31, and resistance at 1.2875, Tuesday’s high.

Earlier in the day, Deutsche Bundesbank President Axel Weber added to fears over the euro zone’s economic recovery saying, “Even though financial markets have calmed again they are still marked by heightened uncertainties and are not immune to setbacks".

Weber, who is also a member of the European Central Bank Governing Council, added, “the direct and indirect consequences [of the crisis] will occupy us still for years," noting that there exists a large need for reform in the financial sector.

The euro was also down against the pound, with EUR/GBP shedding 0.53% to hit 0.8214.

Earlier in the day, official data showed that German exports fell in July, while the country’s trade balance widened less-than-expected in July.

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