Investing.com - The euro fell to a one-week low against the U.S. dollar on Wednesday, as ongoing concerns over Greek debt negotiations and a flurry of weaker U.S. economic data weighed on risk appetite.
EUR/USD hit 1.3027 during late Asian trade, the pair’s lowest since January 25; the pair subsequently consolidated at 1.3041, shedding 0.32%.
The pair was likely to find support at 1.2930, the low of January 25 and resistance at 1.3213, Tuesday’s high.
The euro’s losses came as negotiations over a debt restructuring deal between Greece and its private creditors dragged on, weighing on market sentiment.
The lack of a final agreement has pushed the yield on Portugal’s 10-year government bonds to record highs in recent days, fuelling concerns that Lisbon will also require a debt restructuring deal.
Risk appetite was also hit after weaker-than-expected U.S. data on manufacturing and consumer confidence on Tuesday underlined concerns over the outlook for the U.S. economic recovery, after the Federal Reserve pushed back the timing of likely interest rate hike to mid-2014 last week.
Earlier Wednesday, data showed that China's official manufacturing purchasing managers index rose to 50.5 in January from 50.3 the previous month, slightly better than expectations for a reading of 49.5.
The data eased concerns over a hard landing in the world’s second largest economy.
The euro was almost unchanged against the pound, with EUR/GBP inching up 0.01% to hit 0.8302.
Later in the day, the euro zone was to publish preliminary data on consumer price inflation. Meanwhile, the U.S. was to release industry data on non-farm employment change, as well as a report by the Institute for Supply Management on manufacturing activity.
EUR/USD hit 1.3027 during late Asian trade, the pair’s lowest since January 25; the pair subsequently consolidated at 1.3041, shedding 0.32%.
The pair was likely to find support at 1.2930, the low of January 25 and resistance at 1.3213, Tuesday’s high.
The euro’s losses came as negotiations over a debt restructuring deal between Greece and its private creditors dragged on, weighing on market sentiment.
The lack of a final agreement has pushed the yield on Portugal’s 10-year government bonds to record highs in recent days, fuelling concerns that Lisbon will also require a debt restructuring deal.
Risk appetite was also hit after weaker-than-expected U.S. data on manufacturing and consumer confidence on Tuesday underlined concerns over the outlook for the U.S. economic recovery, after the Federal Reserve pushed back the timing of likely interest rate hike to mid-2014 last week.
Earlier Wednesday, data showed that China's official manufacturing purchasing managers index rose to 50.5 in January from 50.3 the previous month, slightly better than expectations for a reading of 49.5.
The data eased concerns over a hard landing in the world’s second largest economy.
The euro was almost unchanged against the pound, with EUR/GBP inching up 0.01% to hit 0.8302.
Later in the day, the euro zone was to publish preliminary data on consumer price inflation. Meanwhile, the U.S. was to release industry data on non-farm employment change, as well as a report by the Institute for Supply Management on manufacturing activity.