Investing.com - The euro pushed lower against the U.S. dollar on Monday, as sustained concerns over coalition negotiations in Greece and the possibility the country may be forced to exit the euro zone continued to weigh on demand for the single currency.
EUR/USD hit 1.2861 during European afternoon trade, the pair’s lowest since January 19; the pair subsequently consolidated at 1.2866, shedding 0.39%.
The pair was likely to find support at 1.2838, the low of January 19 and resistance at 1.2903, the session high.
On Sunday, Alexis Tsipras, the head of Greece’s largest anti-bailout party Syriza, rejected calls to join a coalition government, fuelling fears that a fresh round of elections is becoming inevitable and casting the country’s ability to uphold its fiscal commitments into doubt.
Meanwhile, Spanish and Italian government bond auctions saw borrowing costs rise.
Spain sold EUR2.9 billion of 12 and 18-month bonds, slightly below its maximum target of EUR3 billion. The yield on the 12-month bonds rose to 2.98%, from 2.62% previously, while the yield on the 18-month bonds increased to 3.3%, from 3.11%.
In Italy, the Treasury raised a total of EUR5.25 billion, meeting the top of a planned issue range of EUR3.50-5.25 billion, at an average 3.91% yield, the highest since January but below market levels of around 4% at the time of the auction.
Adding to the bearish sentiment, official data showed that industrial production in the euro zone fell unexpectedly in March, adding to fears over the health of the region’s economy.
Eurostat, the European statistics agency said industrial production dipped by a seasonally adjusted 0.3% in March, defying expectations for a 0.4% increase.
Elsewhere, the euro was lower against the pound and the yen, with EUR/GBP falling 0.44% to hit 0.8001 and EUR/JPY retreating 0.57% to hit 102.64.
Later in the day, European Union finance ministers were to hold talks in Brussels.
EUR/USD hit 1.2861 during European afternoon trade, the pair’s lowest since January 19; the pair subsequently consolidated at 1.2866, shedding 0.39%.
The pair was likely to find support at 1.2838, the low of January 19 and resistance at 1.2903, the session high.
On Sunday, Alexis Tsipras, the head of Greece’s largest anti-bailout party Syriza, rejected calls to join a coalition government, fuelling fears that a fresh round of elections is becoming inevitable and casting the country’s ability to uphold its fiscal commitments into doubt.
Meanwhile, Spanish and Italian government bond auctions saw borrowing costs rise.
Spain sold EUR2.9 billion of 12 and 18-month bonds, slightly below its maximum target of EUR3 billion. The yield on the 12-month bonds rose to 2.98%, from 2.62% previously, while the yield on the 18-month bonds increased to 3.3%, from 3.11%.
In Italy, the Treasury raised a total of EUR5.25 billion, meeting the top of a planned issue range of EUR3.50-5.25 billion, at an average 3.91% yield, the highest since January but below market levels of around 4% at the time of the auction.
Adding to the bearish sentiment, official data showed that industrial production in the euro zone fell unexpectedly in March, adding to fears over the health of the region’s economy.
Eurostat, the European statistics agency said industrial production dipped by a seasonally adjusted 0.3% in March, defying expectations for a 0.4% increase.
Elsewhere, the euro was lower against the pound and the yen, with EUR/GBP falling 0.44% to hit 0.8001 and EUR/JPY retreating 0.57% to hit 102.64.
Later in the day, European Union finance ministers were to hold talks in Brussels.