Investing.com – The euro trimmed losses against the U.S. dollar on Monday, but remained under pressure ahead of a meeting of European finance ministers to discuss strengthening the euro zones EUR440 billion rescue fund.
EUR/USD clawed back up from1.3429, the pair’s lowest since January 20, to hit 1.3484 during European late afternoon trade, shedding 0.46%.
The pair was likely to find support at 1.3367, the low of January 19 and resistance at 1.3558, the day’s high.
The euro’s earlier losses came following media reports that ailing German lender WestLB could be preparing to outline a government-supported restructuring plan before the European Commission's deadline on Tuesday, setting the groundwork for breaking up the bank.
Sentiment on the single currency was also hit by official data showing that December euro-zone industrial output fell by 0.1%, its first negative reading in three months.
Elsewhere Monday, Italy sold close to the maximum intended amount in five and 30-year government bonds, known as BTPs, at somewhat higher yields than previously, signaling steady investor demand for the country's debt.
Italy sold a total of EUR5.1 billion of BTPs, including the maximum planned EUR3.5 billion of five-year bonds and EUR1.6 billion of the ultra-long BTPs.
The euro was also down against the pound, with EUR/GBP shedding 0.42% to hit 0.8427.
Later in the day, European finance ministers were to meet in Brussels to explore steps to expand the lending capacity of the European Financial Stability Facility. However, Germany remained reluctant to bolster the facility without euro zone commitments on closer economic coordination.
EUR/USD clawed back up from1.3429, the pair’s lowest since January 20, to hit 1.3484 during European late afternoon trade, shedding 0.46%.
The pair was likely to find support at 1.3367, the low of January 19 and resistance at 1.3558, the day’s high.
The euro’s earlier losses came following media reports that ailing German lender WestLB could be preparing to outline a government-supported restructuring plan before the European Commission's deadline on Tuesday, setting the groundwork for breaking up the bank.
Sentiment on the single currency was also hit by official data showing that December euro-zone industrial output fell by 0.1%, its first negative reading in three months.
Elsewhere Monday, Italy sold close to the maximum intended amount in five and 30-year government bonds, known as BTPs, at somewhat higher yields than previously, signaling steady investor demand for the country's debt.
Italy sold a total of EUR5.1 billion of BTPs, including the maximum planned EUR3.5 billion of five-year bonds and EUR1.6 billion of the ultra-long BTPs.
The euro was also down against the pound, with EUR/GBP shedding 0.42% to hit 0.8427.
Later in the day, European finance ministers were to meet in Brussels to explore steps to expand the lending capacity of the European Financial Stability Facility. However, Germany remained reluctant to bolster the facility without euro zone commitments on closer economic coordination.