Investing.com - The euro tanked against the dollar Friday after reports surfaced that the Standard & Poor's ratings agency plans to downgrade France while sluggish demand at an Italian bond auction also bruised the currency.
EUR/USD hit 1.2670 in early Friday trading, down 1.12%, up from a session low of 1.2624 and off from a high of 1.2878.
The pair was likely to find support at 1.2624, Friday's earlier low, and resistance at 1.2790, Wednesday's high.
In Europe, reports surfaced that Standard & Poor's is planning to downgrade France, which sparked a dash to the dollar as a safe-haven play.
In Brussels, an official told the AFP newswire that Standard & Poor's had warned governments that "France loses its triple-A", while fellow top-line creditors Germany, Luxembourg and the Netherlands would be spared.
In Italy, the government raised the maximum planned amount of EUR4.75 billion at auction although markets were hoping for heavier turnout like in Madrid on Thursday, where the Spanish government raised EUR10 billion, twice the planned amount and at lower rates.
Rates in the Italian bond auction fell below 5%, but the turnout was weak enough to dampen market sentiments.
"The auction metrics look robust on aggregate, although not as spectacular as yesterday's Spanish supply," said Michael Leister, a strategist at DZ Bank in Frankfurt, according to Reuters.
In the U.S., the Commerce Department reported that the country's trade deficit widened to USD47.75 billion in November, more than expected.
Consumer sentiment numbers came in better than expected, although events in Europe served as the market's sole weather vane.
The euro was down against the pound and also against the yen, with EUR/GBP falling 0.87% to 0.8286 and EUR/JPY falling 0.92% at 97.46.
Later Friday, Chicago Federal Reserve President Charles Evans is set to speak although markets will keep a close eye on Europe and possible confirmation of downgrades there.
EUR/USD hit 1.2670 in early Friday trading, down 1.12%, up from a session low of 1.2624 and off from a high of 1.2878.
The pair was likely to find support at 1.2624, Friday's earlier low, and resistance at 1.2790, Wednesday's high.
In Europe, reports surfaced that Standard & Poor's is planning to downgrade France, which sparked a dash to the dollar as a safe-haven play.
In Brussels, an official told the AFP newswire that Standard & Poor's had warned governments that "France loses its triple-A", while fellow top-line creditors Germany, Luxembourg and the Netherlands would be spared.
In Italy, the government raised the maximum planned amount of EUR4.75 billion at auction although markets were hoping for heavier turnout like in Madrid on Thursday, where the Spanish government raised EUR10 billion, twice the planned amount and at lower rates.
Rates in the Italian bond auction fell below 5%, but the turnout was weak enough to dampen market sentiments.
"The auction metrics look robust on aggregate, although not as spectacular as yesterday's Spanish supply," said Michael Leister, a strategist at DZ Bank in Frankfurt, according to Reuters.
In the U.S., the Commerce Department reported that the country's trade deficit widened to USD47.75 billion in November, more than expected.
Consumer sentiment numbers came in better than expected, although events in Europe served as the market's sole weather vane.
The euro was down against the pound and also against the yen, with EUR/GBP falling 0.87% to 0.8286 and EUR/JPY falling 0.92% at 97.46.
Later Friday, Chicago Federal Reserve President Charles Evans is set to speak although markets will keep a close eye on Europe and possible confirmation of downgrades there.