Investing.com – The euro slipped lower against the U.S. dollar on Wednesday, after euro zone finance ministers agreed on a plan to expand the region’s bailout fund, but said its capacity to assist indebted nations would not be as large as initially hoped.
EUR/USD hit 1.3260 during late Asian trade, the pair’s lowest since November 25; the pair subsequently consolidated at 1.3263, shedding 0.39%.
The pair was likely to find support at 1.3211, the low of November 25 and a seven-week low and resistance at 1.3357, the days high.
At a meeting on Tuesday, euro zone finance ministers approved measures to increase the lending capacity of the European Financial Stability Facility, the bloc's bailout fund.
One of the measures will create "protection certificates" to be attached to new bonds issued by indebted euro zone countries. The certificates would entitle holders to claim 20% to 30% of the bond's value in the event of a sovereign default.
The ministers also signed off on Greece’s next tranche of bailout aid.
The single currency remained supported amid speculation over a bailout for Italy, after senior euro zone and International Monetary Fund officials said late Tuesday that talks on a EUR400 billion deal may start next month.
The euro was fractionally lower against the pound, with EUR/GBP dipping 0.05% to hit 0.8532.
Later in the day, Germany was to publish official data on retail sales and employment change, while the wider euro zone was to release data on inflation and unemployment. Meanwhile, European Union finance ministers were to meet in Brussels to discuss the ongoing financial crisis in the region.
Also Wednesday, the U.S. was to release a closely watched report on non-farm payrolls compiled by payroll processing firm ADP, as well as data on manufacturing activity in the Chicago area and pending home sales.
EUR/USD hit 1.3260 during late Asian trade, the pair’s lowest since November 25; the pair subsequently consolidated at 1.3263, shedding 0.39%.
The pair was likely to find support at 1.3211, the low of November 25 and a seven-week low and resistance at 1.3357, the days high.
At a meeting on Tuesday, euro zone finance ministers approved measures to increase the lending capacity of the European Financial Stability Facility, the bloc's bailout fund.
One of the measures will create "protection certificates" to be attached to new bonds issued by indebted euro zone countries. The certificates would entitle holders to claim 20% to 30% of the bond's value in the event of a sovereign default.
The ministers also signed off on Greece’s next tranche of bailout aid.
The single currency remained supported amid speculation over a bailout for Italy, after senior euro zone and International Monetary Fund officials said late Tuesday that talks on a EUR400 billion deal may start next month.
The euro was fractionally lower against the pound, with EUR/GBP dipping 0.05% to hit 0.8532.
Later in the day, Germany was to publish official data on retail sales and employment change, while the wider euro zone was to release data on inflation and unemployment. Meanwhile, European Union finance ministers were to meet in Brussels to discuss the ongoing financial crisis in the region.
Also Wednesday, the U.S. was to release a closely watched report on non-farm payrolls compiled by payroll processing firm ADP, as well as data on manufacturing activity in the Chicago area and pending home sales.