Investing.com – The euro remained weaker against the U.S. dollar on Tuesday, as growing doubts about finding a comprehensive solution to the euro zone debt crisis at an upcoming European Union summit weighed on risk appetite.
EUR/USD hit 1.3653 during U.S. morning trade, the pair’s lowest since October 12; the pair subsequently consolidated at 1.3688, shedding 0.33%.
The pair was likely to find support at 1.3582, the low of October 12 and resistance at 1.3913, Monday’s high and a one-month high.
Concerns over the region’s debt crisis intensified after Moody’s placed France’s triple-A credit rating on review and after a report showed that an index of German economic sentiment fell to a three-year low this month.
The ZEW Centre for Economic Research said earlier that its index of German economic sentiment fell to minus 48.3 October from a reading of minus 43.3 in September.
It was the eight consecutive monthly decline in the index and the lowest level since November 2008, adding to fears over a recession in the euro zone’s largest economy.
Analysts had expected the index to decline to minus 45.0 in October.
The data came a day after hopes for a comprehensive solution to the euro zone's financial woes were quashed after Germany’s finance minister said the EU summit on Sunday would not provide a "definitive solution" to the region's debt crisis.
Meanwhile, data showing that China’s economy grew at a slower-than-expected pace in the third quarter curbed demand for higher-yielding assets.
Elsewhere, the euro was higher against the pound, with EUR/GBP rising 0.26% to hit 0.8749.
Also Tuesday, the U.S. Labor Department said producer prices rose more-than-expected in September, climbing 0.8% after a flat reading the previous month and above expectations for a 0.2% gain.
It was the largest increase in five months but the report said the increase in inflation was in large part due to surging gasoline prices, which were unlikely to spark a broad increase in inflation pressures.
Later in the day, Federal Reserve Chairman Ben Bernanke was due to speak at an event in Boston.
EUR/USD hit 1.3653 during U.S. morning trade, the pair’s lowest since October 12; the pair subsequently consolidated at 1.3688, shedding 0.33%.
The pair was likely to find support at 1.3582, the low of October 12 and resistance at 1.3913, Monday’s high and a one-month high.
Concerns over the region’s debt crisis intensified after Moody’s placed France’s triple-A credit rating on review and after a report showed that an index of German economic sentiment fell to a three-year low this month.
The ZEW Centre for Economic Research said earlier that its index of German economic sentiment fell to minus 48.3 October from a reading of minus 43.3 in September.
It was the eight consecutive monthly decline in the index and the lowest level since November 2008, adding to fears over a recession in the euro zone’s largest economy.
Analysts had expected the index to decline to minus 45.0 in October.
The data came a day after hopes for a comprehensive solution to the euro zone's financial woes were quashed after Germany’s finance minister said the EU summit on Sunday would not provide a "definitive solution" to the region's debt crisis.
Meanwhile, data showing that China’s economy grew at a slower-than-expected pace in the third quarter curbed demand for higher-yielding assets.
Elsewhere, the euro was higher against the pound, with EUR/GBP rising 0.26% to hit 0.8749.
Also Tuesday, the U.S. Labor Department said producer prices rose more-than-expected in September, climbing 0.8% after a flat reading the previous month and above expectations for a 0.2% gain.
It was the largest increase in five months but the report said the increase in inflation was in large part due to surging gasoline prices, which were unlikely to spark a broad increase in inflation pressures.
Later in the day, Federal Reserve Chairman Ben Bernanke was due to speak at an event in Boston.