Investing.com - The euro remained lower against the U.S. dollar on Monday, as investors took profits after last week’s rally, while markets were jittery amid Greek debt talks and ahead of a key European Union summit later in the day.
EUR/USD hit 1.3110 during European early afternoon trade, the daily low; the pair subsequently consolidated at 1.3124, declining 0.73%.
The pair was likely to find support at 1.3041, the low of December 27 and resistance at 1.3232, the high of January 27.
EU leaders were to meet in Brussels in order to finalize discussions on a pact aimed at enforcing deficit control measures in the region and to sign off on a EUR500 billion permanent rescue fund to be set up this year.
Meanwhile, delays in negotiations between Greece and its private creditors on a debt restructuring plan weighed on sentiment towards the single currency.
An agreement is necessary for Greece to secure its next tranche of bailout funds in order to avoid a default when a EUR14.5 billion bond repayment comes due on March 20.
The euro found mild support earlier, after Italy successfully auctioned EUR7.48 billion of long term government debt at lower yields than in similar auctions one month ago.
The auction was a key test of Italy’s ability to raise funds on the international market, coming after a two notch downgrade of the country’s sovereign debt rating by Fitch Ratings on Friday.
But the cost of insuring Portuguese government debt against default surged to fresh euro-era highs on Monday, amid renewed fears the country may need a second international bailout.
Elsewhere, the single currency was lower against the pound with EUR/GBP shedding 0.51%, to hit 0.8362.
Later Monday, the U.S. was to publish government data on personal spending and the consumer price index.
EUR/USD hit 1.3110 during European early afternoon trade, the daily low; the pair subsequently consolidated at 1.3124, declining 0.73%.
The pair was likely to find support at 1.3041, the low of December 27 and resistance at 1.3232, the high of January 27.
EU leaders were to meet in Brussels in order to finalize discussions on a pact aimed at enforcing deficit control measures in the region and to sign off on a EUR500 billion permanent rescue fund to be set up this year.
Meanwhile, delays in negotiations between Greece and its private creditors on a debt restructuring plan weighed on sentiment towards the single currency.
An agreement is necessary for Greece to secure its next tranche of bailout funds in order to avoid a default when a EUR14.5 billion bond repayment comes due on March 20.
The euro found mild support earlier, after Italy successfully auctioned EUR7.48 billion of long term government debt at lower yields than in similar auctions one month ago.
The auction was a key test of Italy’s ability to raise funds on the international market, coming after a two notch downgrade of the country’s sovereign debt rating by Fitch Ratings on Friday.
But the cost of insuring Portuguese government debt against default surged to fresh euro-era highs on Monday, amid renewed fears the country may need a second international bailout.
Elsewhere, the single currency was lower against the pound with EUR/GBP shedding 0.51%, to hit 0.8362.
Later Monday, the U.S. was to publish government data on personal spending and the consumer price index.