Investing.com – The euro trimmed losses against the U.S. dollar on Wednesday, retreating from a 4-day low but concerns over sovereign debt contagion remained despite the passage of Ireland's austerity budget through parliament.
EUR/USD clawed up from 1.3179, the pair’s lowest since December 2, to hit 1.3216 during European afternoon trade, shedding 0.32%.
The pair was likely to find support at 1.3059, the low of December 2 and resistance at 1.3421, the high of December 6.
On Tuesday, Ireland moved closer to securing an EUR85 billion international bailout package after the austerity budget passed the first in a series of votes to tackle what Finance Minister Brian Lenihan called the “worst crisis in our history.”
However fears remained over the divide among euro-zone countries on how best to provide a more long-term solution to the region's sovereign debt problems.
On Tuesday, International Monetary Fund Managing Director Dominique Strauss-Kahn criticized the European Union’s approach to the debt crisis, saying the EU needed to find a “comprehensive” solution and not rely on a “case-by-case” method.
The euro was also down against the pound, with EUR/GBP shedding 0.49% to hit 0.8373.
Earlier Wednesday, official data showed that German industrial production rose significantly more-than-expected in October, led by demand for investor goods, such as machinery.
EUR/USD clawed up from 1.3179, the pair’s lowest since December 2, to hit 1.3216 during European afternoon trade, shedding 0.32%.
The pair was likely to find support at 1.3059, the low of December 2 and resistance at 1.3421, the high of December 6.
On Tuesday, Ireland moved closer to securing an EUR85 billion international bailout package after the austerity budget passed the first in a series of votes to tackle what Finance Minister Brian Lenihan called the “worst crisis in our history.”
However fears remained over the divide among euro-zone countries on how best to provide a more long-term solution to the region's sovereign debt problems.
On Tuesday, International Monetary Fund Managing Director Dominique Strauss-Kahn criticized the European Union’s approach to the debt crisis, saying the EU needed to find a “comprehensive” solution and not rely on a “case-by-case” method.
The euro was also down against the pound, with EUR/GBP shedding 0.49% to hit 0.8373.
Earlier Wednesday, official data showed that German industrial production rose significantly more-than-expected in October, led by demand for investor goods, such as machinery.