Investing.com – The euro was down against the U.S. dollar on Thursday, hovering close to a 2-month low as worries about the euro zone debt crisis continued to fester, even after Ireland unveiled an ambitious austerity plan.
EUR/USD hit 1.3308 during late Asian trade, the daily low; the pair subsequently consolidated at 1.3324, shedding 0.07%.
The pair was likely to find support at 1.3247, the low of September 22 and resistance at 1.3420, Wednesday’s high.
On Wednesday, Ireland’s government outlined EUR10 billion in spending cuts and EUR5 billion of tax increases over four years to reduce a budget deficit that is expected to hit 32% of GDP this year—10 times the euro-zone limit.
However the plan has attracted criticism for sticking to growth assumptions that are seen as overly optimistic.
Meanwhile, as the yield spread of Portuguese and Spanish government bonds over benchmark German Bunds hit a euro-lifetime high on Wednesday, concerns mounted that the rescue fund created by the International Monetary Fund and the European Union could run out if either Portugal or Spain also requested assistance.
Bundesbank President Axel Weber attempted to allay fears by warning that the amount of the fund could be increased, saying that a speculative attack on the euro would have “no chance of succeeding."
Meanwhile, the euro edged up against the pound, with EUR/GBP gaining 0.04% to hit 0.8456.
Also Thursday, markets in the U.S. were to remain closed for the Thanksgiving holiday.
EUR/USD hit 1.3308 during late Asian trade, the daily low; the pair subsequently consolidated at 1.3324, shedding 0.07%.
The pair was likely to find support at 1.3247, the low of September 22 and resistance at 1.3420, Wednesday’s high.
On Wednesday, Ireland’s government outlined EUR10 billion in spending cuts and EUR5 billion of tax increases over four years to reduce a budget deficit that is expected to hit 32% of GDP this year—10 times the euro-zone limit.
However the plan has attracted criticism for sticking to growth assumptions that are seen as overly optimistic.
Meanwhile, as the yield spread of Portuguese and Spanish government bonds over benchmark German Bunds hit a euro-lifetime high on Wednesday, concerns mounted that the rescue fund created by the International Monetary Fund and the European Union could run out if either Portugal or Spain also requested assistance.
Bundesbank President Axel Weber attempted to allay fears by warning that the amount of the fund could be increased, saying that a speculative attack on the euro would have “no chance of succeeding."
Meanwhile, the euro edged up against the pound, with EUR/GBP gaining 0.04% to hit 0.8456.
Also Thursday, markets in the U.S. were to remain closed for the Thanksgiving holiday.