Investing.com - The euro fell to a fresh four-month low against the U.S. dollar on Wednesday, after talks aimed at forming a coalition government in Greece failed, fuelling fears that new elections could lead to the country’s eventual exit from the euro zone.
EUR/USD hit 1.2684 during late Asian trade, the pair’s lowest since January 17; the pair subsequently consolidated at 1.2686, shedding 0.33%.
The pair was likely to find support at 1.2623, the low of January 13 and the 2012 low and resistance at 1.2737, the session high.
Greek political leaders announced Tuesday that cross party talks had failed to reach an agreement to form a government, following a May 6 election which left no party with a clear majority.
Greek politicians were to meet later Wednesday to appoint a caretaker government to lead the country until fresh elections can be held in June.
Hoverer, uncertainty over the outcome of the next elections fueled speculation that the country will not be able to access further financial aid and may eventually be forced out of the euro zone.
The euro was trading close to a three-and-a-half year low against the pound, with EUR/GBP dipping 0.08% to hit 0.7953 and slumped to a three-month low against the yen, with EUR/JPY losing 0.08% to hit 101.98.
Later in the day, the euro zone was to publish official data on consumer price inflation, ahead of a speech by European Central Bank President Mario Draghi.
The U.S. was to produce official data on building permits and housing starts, followed by reports on the capacity utilization rate and industrial production. In addition, the Federal Reserve was to publish the minutes of its most recent policy meeting.
EUR/USD hit 1.2684 during late Asian trade, the pair’s lowest since January 17; the pair subsequently consolidated at 1.2686, shedding 0.33%.
The pair was likely to find support at 1.2623, the low of January 13 and the 2012 low and resistance at 1.2737, the session high.
Greek political leaders announced Tuesday that cross party talks had failed to reach an agreement to form a government, following a May 6 election which left no party with a clear majority.
Greek politicians were to meet later Wednesday to appoint a caretaker government to lead the country until fresh elections can be held in June.
Hoverer, uncertainty over the outcome of the next elections fueled speculation that the country will not be able to access further financial aid and may eventually be forced out of the euro zone.
The euro was trading close to a three-and-a-half year low against the pound, with EUR/GBP dipping 0.08% to hit 0.7953 and slumped to a three-month low against the yen, with EUR/JPY losing 0.08% to hit 101.98.
Later in the day, the euro zone was to publish official data on consumer price inflation, ahead of a speech by European Central Bank President Mario Draghi.
The U.S. was to produce official data on building permits and housing starts, followed by reports on the capacity utilization rate and industrial production. In addition, the Federal Reserve was to publish the minutes of its most recent policy meeting.