Forex - EUR/USD lower amid ongoing Spain uncertainty

Published 10/15/2012, 03:24 AM
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Investing.com - The euro was lower against the U.S. dollar on Monday, as uncertainty over Spain’s position on formally requesting a bailout from its euro zone partners persisted, weighing on demand for the single currency.

EUR/USD hit 1.2891 during European morning trade, the pair’s lowest since Thursday; the pair subsequently consolidated at 1.2935, slipping 0.13%.

The pair was likely to find support at 1.2824, Thursday’s low and resistance at 1.2990, Friday’s high.

The euro slipped amid some disappointment in markets after Madrid did not request financial aid over the weekend and a request for a bailout is now seen as increasingly unlikely ahead of regional elections on October 21.

Elsewhere in the euro zone, Greek Prime Minister Antonis Samaras said Sunday his country was facing the “last hurdle” before recovery and expressed confidence that the government will reach an agreement with international creditors ahead of Thursday’s European Union summit.

Market sentiment remained supported after official data over the weekend showed that China’s trade surplus widened in September as export demand increased, easing concerns over a slowdown in the world’s second largest economy.

The euro was fractionally higher against the pound and the yen, with EUR/GBP inching up 0.04% to 0.8062 and EUR/JPY rising 0.11% to 101.71.

Later in the day, the U.S. was to release official data on retail sales, as well as a report on business inventories.


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