Investing.com - The euro was lower against the U.S. dollar on Monday, as weak German business confidence data and uncertainty about whether Spain will request an official bailout weighed.
EUR/USD hit 1.2892 during U.S. morning trade, the pair’s lowest since September 13; the pair subsequently consolidated at 1.2909, down 0.54%
The pair was likely to find support at 1.2816, the low of September 12 and resistance at 1.2989, the session high.
The euro extended early losses against the greenback following a report showing that Germany’s Ifo business confidence index deteriorated to the lowest level since March 2010 this month, amid ongoing concerns over euro zone’s debt crisis.
The Ifo index fell to 101.4 from 102.3 in August, the fifth monthly decline in a row, compared to expectations for a reading of 102.5.
Meanwhile, uncertainty over whether Spain will request a full scale sovereign bailout weighed.
On Thursday Madrid is to present its draft budget for next year and announce structural reforms, while the results of bank stress tests are due on Friday. In addition, ratings agency Moody’s is expected to complete a ratings review on Spain later this week.
Over the weekend, Spain’s economy minister said the country would not rush to seek external financial aid, as pressure mounted on Spain to seek a bailout.
The euro also lost ground against the pound and the yen, with EUR/GBP down 0.33% to 0.7971 and EUR/JPY dropping 0.85% to 100.58.
Elsewhere, concerns over Greece persisted as Athens prepared to present a package of spending cuts demand by international lenders to euro zone officials at the end of this week, amid fears that the country’s budget shortfall could be larger than expected.
EUR/USD hit 1.2892 during U.S. morning trade, the pair’s lowest since September 13; the pair subsequently consolidated at 1.2909, down 0.54%
The pair was likely to find support at 1.2816, the low of September 12 and resistance at 1.2989, the session high.
The euro extended early losses against the greenback following a report showing that Germany’s Ifo business confidence index deteriorated to the lowest level since March 2010 this month, amid ongoing concerns over euro zone’s debt crisis.
The Ifo index fell to 101.4 from 102.3 in August, the fifth monthly decline in a row, compared to expectations for a reading of 102.5.
Meanwhile, uncertainty over whether Spain will request a full scale sovereign bailout weighed.
On Thursday Madrid is to present its draft budget for next year and announce structural reforms, while the results of bank stress tests are due on Friday. In addition, ratings agency Moody’s is expected to complete a ratings review on Spain later this week.
Over the weekend, Spain’s economy minister said the country would not rush to seek external financial aid, as pressure mounted on Spain to seek a bailout.
The euro also lost ground against the pound and the yen, with EUR/GBP down 0.33% to 0.7971 and EUR/JPY dropping 0.85% to 100.58.
Elsewhere, concerns over Greece persisted as Athens prepared to present a package of spending cuts demand by international lenders to euro zone officials at the end of this week, amid fears that the country’s budget shortfall could be larger than expected.