Investing.com – The euro extended losses against the U.S. dollar on Tuesday, tumbling to a 11-week low as concerns over contagion in the euro zone weighed and after a flurry of U.S. economic data.
EUR/USD hit 1.2970 during European afternoon trade, the pair’s lowest since September 16; the pair subsequently consolidated at 1.3021, tumbling 0.79%.
The pair was likely to find support at 1.2828, the low of September 14 and resistance at 1.3301, Monday’s high.
Earlier in the day, the cost of insuring Italian and Spanish sovereign debt against default rose to hit the highest levels since the launch of the single currency, while yields on Portuguese, Irish and Belgian bonds also widened, reflecting concerns that the deal to bailout Ireland would not contain the euro zone's debt crisis.
Meanwhile, in the U.S. data showed that consumer confidence rose more-than-expected in November, rising to a 5-month high.
The Conference Board, a market research group said its index of consumer confidence rose to 54.1 in November, after rising to a revised 49.9 in October. Analysts had expected the index to rise to 52.0 in November. The CB index of consumer expectations rose to 74.2 in November, compared to 67.5 in October.
Lynn Franco, director of The Conference Board Consumer Research Center said, “Consumers’ assessment of the current state of the economy and job market, while only slightly better than last month, suggests the economy is still expanding, albeit slowly.”
The euro was also down against the pound, with EUR/GBP shedding 0.51% to hit 0.8384.
Also Tuesday, industry data showed that U.S. home prices rose less-than-expected in September, while the Chicago PMI rose unexpectedly in November.
EUR/USD hit 1.2970 during European afternoon trade, the pair’s lowest since September 16; the pair subsequently consolidated at 1.3021, tumbling 0.79%.
The pair was likely to find support at 1.2828, the low of September 14 and resistance at 1.3301, Monday’s high.
Earlier in the day, the cost of insuring Italian and Spanish sovereign debt against default rose to hit the highest levels since the launch of the single currency, while yields on Portuguese, Irish and Belgian bonds also widened, reflecting concerns that the deal to bailout Ireland would not contain the euro zone's debt crisis.
Meanwhile, in the U.S. data showed that consumer confidence rose more-than-expected in November, rising to a 5-month high.
The Conference Board, a market research group said its index of consumer confidence rose to 54.1 in November, after rising to a revised 49.9 in October. Analysts had expected the index to rise to 52.0 in November. The CB index of consumer expectations rose to 74.2 in November, compared to 67.5 in October.
Lynn Franco, director of The Conference Board Consumer Research Center said, “Consumers’ assessment of the current state of the economy and job market, while only slightly better than last month, suggests the economy is still expanding, albeit slowly.”
The euro was also down against the pound, with EUR/GBP shedding 0.51% to hit 0.8384.
Also Tuesday, industry data showed that U.S. home prices rose less-than-expected in September, while the Chicago PMI rose unexpectedly in November.