Forex - EUR/USD hits fresh daily low after Anglo Irish downgrade

Published 09/27/2010, 06:02 AM
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Investing.com – The euro extended earlier losses against the U.S. dollar on Monday, falling to hit a fresh daily low, after Moody's Investor Service's downgraded the senior debt rating of Anglo Irish Bank.

EUR/USD hit 1.3426 during European morning trade, a fresh daily low; the pair subsequently consolidated at 1.3462, shedding 0.21%.

The pair was likely to find support at 1.3285, last Friday's low and resistance at 1.3584, the high of April 16.

Earlier Monday, Moody's said that it had downgraded the unguaranteed senior debt of Anglo Irish bank by three notches and was keeping the bank under review for a further possible downgrade.

In a statement Mooody's said, “Without an explicit government guarantee for senior unsecured note holders, Moody’s believes that the ratings for these instruments need to incorporate this greater marginal risk”.

The move intensified worries about the euro zone's banking sector.

The euro was also down against the pound, with EUR/GBP shedding 0.24% to hit 0.8505.

Later in the day, the president of the European Central Bank Jean-Claude Trichet was to testify before the Committee on Economic and Monetary Affairs of the European Parliament.

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