Forex - EUR/USD lower as euro zone debt worries resurface

Published 11/08/2010, 02:23 AM
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EUR/GBP
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Investing.com – The euro was down against the U.S. dollar on Monday, falling to hit a 4-day low as the dollar rallied following Friday’s strong non-farm payrolls data and as concerns over euro zone sovereign debt resurfaced.

EUR/USD hit 1.3920 during late Asian trade, the pair’s lowest since November 2; the pair subsequently consolidated at 1.3962, shedding 0.50%.

The pair was likely to find support at 1.3806, the low of October 29 and resistance at 1.4248, last Friday’s high.

On Friday, the U.S. Department of Labor said that non-farm payrolls rose significantly more-than-expected in October, climbing by 151K after falling by a revised 41K in September. Analysts had expected non-farm payrolls to rise by 60K in October.

Meanwhile, in the euro zone concerns over sovereign debt reappeared as Ireland’s borrowing costs reached record highs on Friday after the government announced a package of EUR 15 billion in spending cuts aimed at reducing the country’s budget deficit, currently standing at 32% of GDP.

The euro was also down against the pound, with EUR/GBP shedding 0.23% to hit 0.8648.

Later in the day, the euro zone was to publish data on investor confidence and German industrial production.

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