Investing.com - The euro trimmed losses against the U.S. dollar on Tuesday, but the single currency remained under pressure amid ongoing concerns over Spain and Greece, while worries over the outlook for global growth also weighed.
EUR/USD pulled back from 1.2905, the pair’s lowest since Friday, to hit 1.2950 during European afternoon trade, still down 0.13% on the day.
The pair was likely to find near-term support at 1.2900, the low of October 4 and resistance at 1.3024, Monday’s high.
The euro weakened earlier in the session after the International Monetary Fund cut its forecast for global growth this year to 3.3% from 3.5% and warned that a failure by European and U.S. policymakers to tackle current problems could threaten what it said was an already “slow and bumpy” economic recovery.
Demand for the single currency was also hit as uncertainty over how soon Spain may formally request a bailout lingered after euro zone finance ministers said Monday that Madrid did not need external financial aid yet.
Meanwhile, investors remained cautious amid ongoing uncertainty over whether international creditors will extend loans to Greece, as the country struggles to meet deficit reduction targets.
In testimony to the European Parliament earlier Tuesday, European Central Bank President Mario Draghi reiterated that governments cannot rely on the ECB to fix the crisis in the region and said that national reforms were vital.
Mr. Draghi also warned that he expected economic activity in the euro zone to remain weak, calling the road ahead long and uphill.
The euro was lower against the pound and the yen, with EUR/GBP down 0.016% to 0.8078 and EUR/JPY sliding 0.24% to 101.33.
Also Tuesday, German Chancellor Angela Merkel was holding talks with Greek Prime Minister Antonis Samaras in Athens, while finance ministers from the European Union were holding a day of meeting in Brussels.
EUR/USD pulled back from 1.2905, the pair’s lowest since Friday, to hit 1.2950 during European afternoon trade, still down 0.13% on the day.
The pair was likely to find near-term support at 1.2900, the low of October 4 and resistance at 1.3024, Monday’s high.
The euro weakened earlier in the session after the International Monetary Fund cut its forecast for global growth this year to 3.3% from 3.5% and warned that a failure by European and U.S. policymakers to tackle current problems could threaten what it said was an already “slow and bumpy” economic recovery.
Demand for the single currency was also hit as uncertainty over how soon Spain may formally request a bailout lingered after euro zone finance ministers said Monday that Madrid did not need external financial aid yet.
Meanwhile, investors remained cautious amid ongoing uncertainty over whether international creditors will extend loans to Greece, as the country struggles to meet deficit reduction targets.
In testimony to the European Parliament earlier Tuesday, European Central Bank President Mario Draghi reiterated that governments cannot rely on the ECB to fix the crisis in the region and said that national reforms were vital.
Mr. Draghi also warned that he expected economic activity in the euro zone to remain weak, calling the road ahead long and uphill.
The euro was lower against the pound and the yen, with EUR/GBP down 0.016% to 0.8078 and EUR/JPY sliding 0.24% to 101.33.
Also Tuesday, German Chancellor Angela Merkel was holding talks with Greek Prime Minister Antonis Samaras in Athens, while finance ministers from the European Union were holding a day of meeting in Brussels.