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Forex - EUR/USD sharply lower in holiday-thinned trade

Published 09/19/2011, 02:29 AM
EUR/USD
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EUR/GBP
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Investing.com – The euro was sharply lower against the U.S. dollar in holiday-thinned trade on Monday, after a weekend meeting of European finance ministers failed to make headway on dealing with the debt crisis in the region.

EUR/USD hit 1.3645 during late Asian trade, the pair’s lowest since last Wednesday; the pair subsequently consolidated at 1.3672, tumbling 0.92%.

The pair was likely to find support at 1.3493, the low of September 12 and a seven-month low and resistance at 1.3782, last Wednesday’s high.

European Union ministers failed to reach an agreement over a demand by Finland that Greece provide collateral in exchange for further bailout funds.

Ministers also warned they may withhold Greece’s next tranche of bailout aid if Athens fails to meet deficit reduction targets. After the meeting, Greek Prime Minister George Papandreou canceled a planned visit to the U.S. in order to hold crisis talks at home.

The euro was also down against the pound, with EUR/GBP shedding 0.36% to hit 0.8707.

Later in the day, officials from the EU and the International Monetary Fund were to hold talks with Greek Finance Minister Evangelos Venizelos to discuss whether Athens qualifies for its next tranche of aid.

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