Investing.com - The euro slipped to a six-day low against the U.S. dollar on Wednesday, following reports that European Union officials are considering delaying a second bailout for Greece until after a general election in April.
EUR/USD hit 1.3064 during U.S. morning trade, the pair’s lowest since February 6; the pair subsequently consolidated at 1.3066, shedding 0.52%.
The pair was likely to find short-term support at 1.3027, the low of February 6 and resistance at 1.3190, the session high.
The euro weakened broadly after Reuters reported that EU officials are looking at ways to delay the second bailout and still avoid a default amid concerns that political leaders in Greece are not fully committed to implementing harsh austerity measures demanded by international creditors.
Without a bailout, Greece faces the threat of defaulting when a EUR14.5 billion bond redemption comes due on March 20.
Euro zone finance ministers have replaced a meeting aimed at signing off on Greece’s bailout scheduled to take place later in the day with a conference call, after failing to receive assurances on how Athens plans to implement fiscal reforms approved in a parliamentary vote on Sunday.
The single currency found support earlier after the head of China’s central bank said he believes the euro zone’s debt crisis can be solved and said that China will become more involved in efforts to resolve the crisis through mechanisms such as the European Financial Stability Facility.
Also Wednesday, official data showed that the euro zone’s gross domestic product shrank by a seasonally adjusted 0.3% during the fourth quarter and grew by just 0 .7% during 2011 as a whole.
Germany’s economy contracted less-than-expected in the final three months of 2011, shrinking by a seasonally adjusted 0.2%, slightly better than expectations for a contraction of 0.3%.
The euro was also down against the pound and the yen, with EUR/GBP shedding 0.33% to hit 0.8340 and EUR/JPY falling 0.65% to hit 102.34.
In the U.S., a report showed that manufacturing in the New York region expanded at the fastest rate since June 2010 in February. A separate report showed that industrial production in the U.S. was unexpectedly flat in January.
Later in the day, the Federal Reserve was to publish the minutes of its most recent policy-setting meeting.
EUR/USD hit 1.3064 during U.S. morning trade, the pair’s lowest since February 6; the pair subsequently consolidated at 1.3066, shedding 0.52%.
The pair was likely to find short-term support at 1.3027, the low of February 6 and resistance at 1.3190, the session high.
The euro weakened broadly after Reuters reported that EU officials are looking at ways to delay the second bailout and still avoid a default amid concerns that political leaders in Greece are not fully committed to implementing harsh austerity measures demanded by international creditors.
Without a bailout, Greece faces the threat of defaulting when a EUR14.5 billion bond redemption comes due on March 20.
Euro zone finance ministers have replaced a meeting aimed at signing off on Greece’s bailout scheduled to take place later in the day with a conference call, after failing to receive assurances on how Athens plans to implement fiscal reforms approved in a parliamentary vote on Sunday.
The single currency found support earlier after the head of China’s central bank said he believes the euro zone’s debt crisis can be solved and said that China will become more involved in efforts to resolve the crisis through mechanisms such as the European Financial Stability Facility.
Also Wednesday, official data showed that the euro zone’s gross domestic product shrank by a seasonally adjusted 0.3% during the fourth quarter and grew by just 0 .7% during 2011 as a whole.
Germany’s economy contracted less-than-expected in the final three months of 2011, shrinking by a seasonally adjusted 0.2%, slightly better than expectations for a contraction of 0.3%.
The euro was also down against the pound and the yen, with EUR/GBP shedding 0.33% to hit 0.8340 and EUR/JPY falling 0.65% to hit 102.34.
In the U.S., a report showed that manufacturing in the New York region expanded at the fastest rate since June 2010 in February. A separate report showed that industrial production in the U.S. was unexpectedly flat in January.
Later in the day, the Federal Reserve was to publish the minutes of its most recent policy-setting meeting.