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Forex - EUR/USD tumbles to 4-day low after Trichet remarks

Published 10/18/2010, 03:28 AM
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Investing.com – The euro was down against the U.S. dollar on Monday, tumbling to hit a 4-day low, following remarks by European Central Bank president Jean-Claude Trichet over the weekend.

EUR/USD hit 1.3856 during late Asian trade, the pair’s lowest since October 12; the pair subsequently consolidated at 1.3873, tumbling 0.74%.

The pair was likely to find support at 1.3636, the low of October 5 and resistance at 1.4155, last Friday’s high and a 10-month high.

On Sunday, Trichet distanced himself from comments made on ECB monetary policy by governing council member Axel Weber last week.  Weber said that the risk of recession in Europe was negligible and that the central bank's bond purchase program should be phased out.

Trichet said that the governing board as a whole did not agree with that view, saying "That is not the position of the governing council, in an overwhelming majority".

The euro was also down against the pound, with EUR/GBP shedding 0.10% to hit 0.8739,

Later in the day, the U.S. was to release official data on TIC long term purchases as well as data on the capacity utilization rate and industrial production.

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