Investing.com - The euro fell against the dollar early Monday as talks between Greece and its private creditors stalled on Friday, with little progress made over the weekend.
EUR/USD hit 1.2892 in early Asian trading on Monday, down 0.30%, up from a session low of 1.2876 and off from a high of 1.2896.
The pair sought to test support at 1.2840, Thursday's low, and resistance at 1.2986, Friday's session high.
"There is some nervousness around the negotiations that are happening between Greece and its private sector creditors with mixed reports," said Besa Deda, chief economist at St. George Bank in Sydney, according to Bloomberg.
"There’s a bit of fresh uncertainty around that and that’s encouraging profit-taking on the euro."
Greece is holding talks with private creditors with the aim of working out terms to restructure the country's debt.
Greece has to strike a deal with creditors to restructure its debt if it wants to tap fresh bailout money and avoid defaulting on a EUR14.4 billion bond redemption coming due on March 20.
Many investors were hoping for both sides to strike a deal last Friday before the weekend.
The euro was down against both the pound and the yen, with EUR/GBP falling 0.06% to 0.8297 and EUR/JPY falling 0.39% at 99.22.
The U.S. Federal Open Market Committee meets Wednesday.
Even if the monetary policy body doesn't change interest rates, talk ahead of the meeting regarding possible accommodative policies such as a third round of quantitative easing, asset purchases from banks with freshly printed money, could weaken the dollar and send other currencies rising.
European consumer confidence numbers come out on Monday, while the Bank of Japan will tentatively hold a monetary policy meeting as well.
Later Monday, Canada is to publish its index of leading economic indicators, a good weather vane for the economy over the coming months.
EUR/USD hit 1.2892 in early Asian trading on Monday, down 0.30%, up from a session low of 1.2876 and off from a high of 1.2896.
The pair sought to test support at 1.2840, Thursday's low, and resistance at 1.2986, Friday's session high.
"There is some nervousness around the negotiations that are happening between Greece and its private sector creditors with mixed reports," said Besa Deda, chief economist at St. George Bank in Sydney, according to Bloomberg.
"There’s a bit of fresh uncertainty around that and that’s encouraging profit-taking on the euro."
Greece is holding talks with private creditors with the aim of working out terms to restructure the country's debt.
Greece has to strike a deal with creditors to restructure its debt if it wants to tap fresh bailout money and avoid defaulting on a EUR14.4 billion bond redemption coming due on March 20.
Many investors were hoping for both sides to strike a deal last Friday before the weekend.
The euro was down against both the pound and the yen, with EUR/GBP falling 0.06% to 0.8297 and EUR/JPY falling 0.39% at 99.22.
The U.S. Federal Open Market Committee meets Wednesday.
Even if the monetary policy body doesn't change interest rates, talk ahead of the meeting regarding possible accommodative policies such as a third round of quantitative easing, asset purchases from banks with freshly printed money, could weaken the dollar and send other currencies rising.
European consumer confidence numbers come out on Monday, while the Bank of Japan will tentatively hold a monetary policy meeting as well.
Later Monday, Canada is to publish its index of leading economic indicators, a good weather vane for the economy over the coming months.