Forex - EUR/USD lower amid ongoing Spain uncertainty

Published 10/09/2012, 03:34 AM
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Investing.com - The euro edged lower against the U.S. dollar on Tuesday, as uncertainty over how soon Spain will formally request a bailout curbed demand for the single currency.

EUR/USD hit 1.2928 during European morning trade, the pair’s lowest since Friday; the pair subsequently consolidated at 1.2933, down 0.25%.

The pair was likely to find near-term support at 1.2900, the low of October 4 and resistance at 1.3024, Monday’s high.

The euro remained under pressure as investor’s awaited indications that Madrid will request a full-scale bailout and trigger the European Central Bank’s bond buying program, which market participant’s hope will ease the debt crisis in the euro zone.

Investors also remained cautious amid ongoing uncertainty over whether international creditors will extend loans to Greece, as the country struggles to meet deficit reduction targets.

The euro was lower against the pound and the yen, with EUR/GBP slipping 0.11% to 0.8082 and EUR/JPY down 0.18% to 101.39.

Later in the day, German Chancellor Angela Merkel was to travel to Athens for talks with Greek political leaders. Meanwhile, finance ministers from the European Union were to hold a day of talks in Brussels.

Also Tuesday, ECB President Mario Draghi was to testify to the European Parliament, while the International Monetary Fund and world bank leaders were to continue talks in Tokyo.




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