Investing.com - The euro remained lower against the U.S. dollar on Monday, as concerns over sovereign funding in the euro zone continued to weigh on market sentiment after a weaker than expected French debt sale.
EUR/USD hit 1.2626 during U.S. morning trade, the daily low; the pair subsequently consolidated at 1.2669, dipping 0.07%.
The pair was likely to find short-term support at 1.2623, Friday’s low and a 16-month low and resistance at 1.2789, the high of January 11.
France sold EUR8.5 billion of short-term government debt earlier, just shy of the targeted amount of EUR8.7 billion, in an auction which met with lackluster investor demand and slightly higher yields.
Earlier Monday, ratings agency Moody’s said it was maintaining France’s triple-A rating and stable outlook for its debt for now, but added that it would update markets in the first quarter of 2012.
The euro came under pressure on Friday after Standard & Poor’s cut France’s triple-A rating by one notch on Friday and said it would decide shortly whether to downgrade the triple-A rating on the euro zone's bailout fund, the European Financial Stability Facility.
S&P also downgraded eight other euro zone sovereigns, including Italy, Spain, Cyprus and Portugal.
Meanwhile, the threat of a default by Greece resurfaced after talks aimed at negotiating a restructuring of the country’s debts broke down on Friday, amid disagreements over how much money investors will lose by swapping their bonds. The talks were set to resume later in the week.
Elsewhere, the euro was fractionally lower against the pound with EUR/GBP edging down 0.07%, to hit 0.8271.
Also Monday, European Central Bank President Mario Draghi was to testify before the European Parliament's Economic and Monetary Affairs Committee, while markets in the U.S. were to remain closed for a national holiday.
EUR/USD hit 1.2626 during U.S. morning trade, the daily low; the pair subsequently consolidated at 1.2669, dipping 0.07%.
The pair was likely to find short-term support at 1.2623, Friday’s low and a 16-month low and resistance at 1.2789, the high of January 11.
France sold EUR8.5 billion of short-term government debt earlier, just shy of the targeted amount of EUR8.7 billion, in an auction which met with lackluster investor demand and slightly higher yields.
Earlier Monday, ratings agency Moody’s said it was maintaining France’s triple-A rating and stable outlook for its debt for now, but added that it would update markets in the first quarter of 2012.
The euro came under pressure on Friday after Standard & Poor’s cut France’s triple-A rating by one notch on Friday and said it would decide shortly whether to downgrade the triple-A rating on the euro zone's bailout fund, the European Financial Stability Facility.
S&P also downgraded eight other euro zone sovereigns, including Italy, Spain, Cyprus and Portugal.
Meanwhile, the threat of a default by Greece resurfaced after talks aimed at negotiating a restructuring of the country’s debts broke down on Friday, amid disagreements over how much money investors will lose by swapping their bonds. The talks were set to resume later in the week.
Elsewhere, the euro was fractionally lower against the pound with EUR/GBP edging down 0.07%, to hit 0.8271.
Also Monday, European Central Bank President Mario Draghi was to testify before the European Parliament's Economic and Monetary Affairs Committee, while markets in the U.S. were to remain closed for a national holiday.