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Forex - EUR/USD slips to 6-day low but downside seen limited

Published 04/18/2011, 01:32 AM
EUR/USD
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EUR/GBP
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Investing.com – The euro slipped to a six-day low against the U.S. dollar on Monday, as concerns over the sovereign debt levels of some peripheral euro nations weighed but the single currency remained well supported by prospects of another interest rate hike.

EUR/USD hit 1.4349 during late Asian trade, the pair’s lowest since April 8; the pair subsequently consolidated at 1.4370, shedding 0.40%.

The pair was likely to find support at 1.4290, the low of April 8 and resistance at 1.4519, last Wednesday’s high and a 15-month high.

Sentiment toward the euro was hit after Finland's anti-euro party made large inroads in a parliamentary election on Sunday and as speculation over Greek debt restructuring prompted traders to take profits, following the currency’s recent rally.

Finland's parliament, uniquely in the euro zone, has the right to vote on European Union requests for bailout funds, meaning it could delay moves to bail out Portugal.

The euro was also lower against the pound, with EUR/GBP sliding 0.14% to hit 0.8824.

Later in the day, the euro zone was to publish official data on consumer confidence, while in the U.S., Federal Reserve Bank of Dallas President Richard Fisher is due to speak at two events in Atlanta.

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