Investing.com – The euro was down against the U.S. dollar on Tuesday, falling to a 4-day low as concerns over political turmoil in Ireland fuelled fears over contagion to other vulnerable euro zone nations.
EUR/USD hit 1.3527 during late Asian trade, the pair’s lowest since November 17; the pair subsequently consolidated at 1.3566, shedding 0.44%.
The pair was likely to find support at 1.3446, the low of November 16 and a 7-week low and resistance at 1.3785, Monday’s high.
On Monday, Irish Prime Minister Brian Cowan said that he would call a general election in the New Year after the Green party, the junior partner in the government, said it would withdraw its support from the minority coalition after the European Union/International Monetary Fund bailout package was in place.
Meanwhile, an independent Irish government member said he was unlikely to support the country’s 2011 budget. The Irish government, which holds a thin majority, needs the support of independent parties to pass its budget.
The news came after rating agency Moody's said a "multi-notch downgrade" on Ireland’s credit rating was now likely.
The euro was also down against the pound, with EUR/GBPO shedding 0.15% to hit 0.8528.
Later Tuesday, the U.S. was to publish revised figures on third quarter GDP as well as data on existing home sales and manufacturing. In addition, the Federal Reserve was to publish the minutes of its November monetary policy meeting while the euro zone was to publish data on German consumer climate.
EUR/USD hit 1.3527 during late Asian trade, the pair’s lowest since November 17; the pair subsequently consolidated at 1.3566, shedding 0.44%.
The pair was likely to find support at 1.3446, the low of November 16 and a 7-week low and resistance at 1.3785, Monday’s high.
On Monday, Irish Prime Minister Brian Cowan said that he would call a general election in the New Year after the Green party, the junior partner in the government, said it would withdraw its support from the minority coalition after the European Union/International Monetary Fund bailout package was in place.
Meanwhile, an independent Irish government member said he was unlikely to support the country’s 2011 budget. The Irish government, which holds a thin majority, needs the support of independent parties to pass its budget.
The news came after rating agency Moody's said a "multi-notch downgrade" on Ireland’s credit rating was now likely.
The euro was also down against the pound, with EUR/GBPO shedding 0.15% to hit 0.8528.
Later Tuesday, the U.S. was to publish revised figures on third quarter GDP as well as data on existing home sales and manufacturing. In addition, the Federal Reserve was to publish the minutes of its November monetary policy meeting while the euro zone was to publish data on German consumer climate.