Forex - EUR/USD hits 3-month low after Greece, France elections

Published 05/07/2012, 02:37 AM
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Investing.com - The euro tumbled to a three-month low against the U.S. dollar on Monday, after election results on Greece and France fuelled concerns over attempt to resolve Europe’s debt crisis.

EUR/USD hit 1.2956 during late Asian trade, the pair’s lowest since January 25; the pair subsequently consolidated at 1.3012, shedding 0.54%.

The pair was likely to find support at 1.2956, the session low and a three-month low and resistance at 1.3031, the session high.

In Greece, neither of the two pro-bailout parties secured enough votes to form a majority in parliament, as voters favored smaller parties who campaigned against the harsh government austerity program, throwing the future of the country’s international bailout agreement into doubt.

Meanwhile, in France President Nicolas Sarkozy was defeated by socialist candidate François Hollande, who has been critical of the country's austerity program.

The euro was also down against the pound and the yen, with EUR/GBP dropping 0.54% to hit 0.8056 and EUR/JPY down 0.56% to hit 103.89.

Later Monday, the euro zone was to publish a report on investor confidence, while Germany was to publish official data on factory orders.

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