Investing.com – The euro extended losses against the U.S. dollar on Tuesday, plunging to a 2-month low as risk aversion gripped markets amid fears over sovereign debt contagion in the euro zone and following a military skirmish in the Korean peninsula.
EUR/USD hit 1.3459 during European afternoon trade, the pair’s lowest since September 29; the pair subsequently consolidated at 1.3465, plunging 1.20%.
The pair was likely to find support at 1.3247, the low of September 22 and resistance at 1.3785, Monday’s high.
Earlier in the day, German Chancellor Angela Merkel said Ireland's crisis was different to Greece's but just as worrying and the single currency was in an "exceptionally serious" situation.
Political turmoil in Ireland stoked fears that the crisis would spread to other indebted euro zone nations, such as Spain or Portugal.
Elsewhere Tuesday, North Korean artillery fired dozens of shells onto a South Korean island near the disputed sea border, prompting a return of fire by the South.
The euro was also sharply lower against the pound, with EUR/GBP tumbling 1.04% to hit 0.8449.
Also Tuesday, preliminary data released by the Bureau of Economic Analysis said gross domestic product increased at a seasonally adjusted annual rate of 2.5% during the third quarter, up from an advanced estimate of 2.0%. Analysts had expected the second estimate of U.S. GDP to reach 2.4% in the third quarter.
Separate data showed that U.S. existing home sales fell less-than-expected in October, while the Richmond manufacturing index rose more-than-expected in November.
Later in the day, the Federal Reserve was to publish the minutes of its November monetary policy meeting.
EUR/USD hit 1.3459 during European afternoon trade, the pair’s lowest since September 29; the pair subsequently consolidated at 1.3465, plunging 1.20%.
The pair was likely to find support at 1.3247, the low of September 22 and resistance at 1.3785, Monday’s high.
Earlier in the day, German Chancellor Angela Merkel said Ireland's crisis was different to Greece's but just as worrying and the single currency was in an "exceptionally serious" situation.
Political turmoil in Ireland stoked fears that the crisis would spread to other indebted euro zone nations, such as Spain or Portugal.
Elsewhere Tuesday, North Korean artillery fired dozens of shells onto a South Korean island near the disputed sea border, prompting a return of fire by the South.
The euro was also sharply lower against the pound, with EUR/GBP tumbling 1.04% to hit 0.8449.
Also Tuesday, preliminary data released by the Bureau of Economic Analysis said gross domestic product increased at a seasonally adjusted annual rate of 2.5% during the third quarter, up from an advanced estimate of 2.0%. Analysts had expected the second estimate of U.S. GDP to reach 2.4% in the third quarter.
Separate data showed that U.S. existing home sales fell less-than-expected in October, while the Richmond manufacturing index rose more-than-expected in November.
Later in the day, the Federal Reserve was to publish the minutes of its November monetary policy meeting.