Forex - EUR/USD slides to two-month low on Greece concerns

Published 11/13/2012, 02:38 AM
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Investing.com - The euro slid to a two-month low against the U.S. dollar on Tuesday, amid concerns over a delayed bailout payment for Greece, while fears that the economic outlook for the euro zone is deteriorating also weighed.

EUR/USD hit 1.2673 during late Asian trade, the pair’s lowest since September 7; the pair subsequently consolidated at 1.2691, shedding 0.14%.

The pair was likely to find support at 1.2625, the low of September 7 and resistance at 1.2738, Monday’s high.

The International Monetary Fund and European officials are unable to reach an agreement on how best to reduce Greece’s debt to manageable levels, which has resulted in a delay in unlocking a EUR31.5 billion bailout installment.

The decision has been postponed until 20 November.

Greece was to hold an auction of government bonds later Tuesday, in order to raise enough money to repay EUR5 billion of debts maturing on Friday.

Investors were also awaiting the ZEW report on German economic sentiment later in the session, amid fears that the bloc’s largest economy has been hit by the ongoing debt crisis.

The euro was lower against the pound and the yen, with EUR/GBP slipping 0.12% to 0.7995 and EUR/JPY down 0.38% to 100.64.

Later Tuesday, the U.S. was to release official data on the federal budget balance.



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