Forex - EUR/USD retreats as investors take profits

Published 04/22/2012, 07:55 PM
Updated 04/22/2012, 07:57 PM
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Investing.com - The euro slipped against the dollar Monday as investors sold for profits in wake of recent gains made on strong German confidence data and on news the International Monetary Fund will draw from a larger war chest to battle Europe's debt crisis.

Investors also took time to digest French elections taking place.

In Asian trading on Monday, EUR/USD was trading at 1.3202, down 0.12%, up from a session low of 1.3187 and off from a high of 1.3204.

The pair was likely to find support at 1.3070, Tuesday's low, and resistance at 1.3228, Friday's high.

The euro rallied on Friday on news the German Ifo business sentiment index for April rose to 109.9 from 109.8 the previous month, outpacing expectations for the figure to drop to 109.5.

April's figure for Europe's largest economy represented a nine-month high.

Meanwhile, G20 countries agreed to extend USD430 billion in fresh funding to the International Monetary Fund to help the multilateral lending institution contain the eurozone debt crisis and cushion the rest of the world from it.

However in opening trading in Asia, the euro traded down slightly as the market digested recent economic events as well as elections in France, where President Nicolas Sarkozy and Socialist challenger Francois Hollande appeared to be headed for a runoff at the time of writing.

The euro on Friday hit its highest level against the dollar in more than two weeks.

The euro, meanwhile, was down against the pound and down against the yen, with EUR/GBP trading down 0.16% at 0.8184 and EUR/JPY down 0.05% and trading at 107.73.

Later Monday, the eurozone will release preliminary reports on manufacturing and services purchasing managers’ indices in France, Germany and for the single currency bloc.







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