Investing.com – The euro extended losses against the U.S. dollar on Wednesday, following reports that European Union leaders will take a decision on enlarging the regions bailout fund at the end of June and not at a summit this week.
EUR/USD hit 1.4140 during European early afternoon trade, the pair’s lowest since Friday; the pair subsequently consolidated at 1.4152, shedding 0.31%.
The pair was likely to find support at 1.3979, last Friday’s low and resistance at 1.4247, Tuesday’s high and a four-and-a-half-month high.
EU leaders had been expected agree on whether guarantees could be used to increase the capacity of the European Financial Stability Facility at a summit meeting later in the week but have now postponed the decision until late June.
Also Wednesday, the fate of Portugal’s government was hanging in the balance after the country’s Prime Minister threatened to resign if a vote on fresh austerity measures failed to pass, fanning fears that the country was moving closer to taking a financial bailout.
Meanwhile, the euro was higher against the pound, with EUR/GBP climbing 0.17% to hit 0.8690.
Earlier in the day, the minutes of the Bank of England’s most recent policy setting meeting showed the bank saw “merit in waiting” to examine the effect of higher oil prices, dampening speculation over an interest rate hike by the bank in the coming months.
EUR/USD hit 1.4140 during European early afternoon trade, the pair’s lowest since Friday; the pair subsequently consolidated at 1.4152, shedding 0.31%.
The pair was likely to find support at 1.3979, last Friday’s low and resistance at 1.4247, Tuesday’s high and a four-and-a-half-month high.
EU leaders had been expected agree on whether guarantees could be used to increase the capacity of the European Financial Stability Facility at a summit meeting later in the week but have now postponed the decision until late June.
Also Wednesday, the fate of Portugal’s government was hanging in the balance after the country’s Prime Minister threatened to resign if a vote on fresh austerity measures failed to pass, fanning fears that the country was moving closer to taking a financial bailout.
Meanwhile, the euro was higher against the pound, with EUR/GBP climbing 0.17% to hit 0.8690.
Earlier in the day, the minutes of the Bank of England’s most recent policy setting meeting showed the bank saw “merit in waiting” to examine the effect of higher oil prices, dampening speculation over an interest rate hike by the bank in the coming months.