Forex - EUR/USD hits fifteen month low on bank concerns

Published 01/05/2012, 12:51 PM
Updated 01/05/2012, 12:52 PM
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Investing.com - The euro hit 15 month lows against the dollar Thursday, on a strong U.S. labor report and euro zone bank capital concerns.  

EUR/USD hit a low of 1.2777 during U.S. trade. The pair is off a high of 1.2947 and is currently trading at 1.2935 up 0.90%.  

The pair was likely to find support at 1.2777 and  technical resistance exists at 1.2948.  

The single currency bearishness was exasperated after France's borrowing costs climbed at a bond sale and credit rating agencies threatened to cut the nations AAA rating.  

Italy's largest bank, UniCredit stated it would have to seek additional financing while its CEO said things are getting worse and he expects other banks to follow their lead, adding to the bearish fervor. 

David Mann at Standard Chartered told Bloomberg, "The worries that are going on in Europe could trump all of the better data we've been getting out of the U.S. in terms of risk sentiment."  

Meanwhile, U.S. initial jobless claims numbers decreased by 15,000 beating estimates, as well as a manufacturing survey indicating economic expansion in the U.S. .  

The Euro dropped against the pound with EUR/GBP giving back 0.37% to 0.8256.  

Investors are awaiting the critical Non Farm Payroll figures from the U.S. and a euro zone retail sales report on Friday.  








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