Investing.com – The euro extended losses against the U.S. dollar on Tuesday, tumbling to an eight-day low amid fresh uncertainty over how the euro zone debt crisis might be resolved after Greece called for a referendum on its latest bailout deal.
EUR/USD hit 1.3673 during European late morning trade, the pair’s lowest since October 20; the pair subsequently consolidated at 1.3902, falling 1.12%.
The pair was likely to find support at 1.3582, the low of October 12 and resistance at 1.3870, the days high.
Sentiment on the single currency soured following Greek Prime Minister George Papandreou's decision to hold a surprise referendum on Greece's bailout program.
If Greece rejects the deal it could move the country closer to a sovereign default, increasing the risk of contagion in global financial markets.
Risk appetite was also hit after government data showed that Chinese manufacturing activity fell to its lowest level since February 2009 in October, while the Reserve Bank of Australia's decision to cut interest rates for the first time in more than two years underlined weakness in the global economy.
Meanwhile, the euro was fractionally lower against the pound, with EUR/GBP dipping 0.05% to hit 0.8609.
The pound remained under pressure after official data showed that the U.K. economy grew slightly more-than-expected in the third quarter as the service sector expanded, but a separate report showed that manufacturing activity in the U.K. fell to a 28-month low in October.
Later Tuesday, the Institute of Supply Management was to produce a report on U.S. manufacturing activity.
EUR/USD hit 1.3673 during European late morning trade, the pair’s lowest since October 20; the pair subsequently consolidated at 1.3902, falling 1.12%.
The pair was likely to find support at 1.3582, the low of October 12 and resistance at 1.3870, the days high.
Sentiment on the single currency soured following Greek Prime Minister George Papandreou's decision to hold a surprise referendum on Greece's bailout program.
If Greece rejects the deal it could move the country closer to a sovereign default, increasing the risk of contagion in global financial markets.
Risk appetite was also hit after government data showed that Chinese manufacturing activity fell to its lowest level since February 2009 in October, while the Reserve Bank of Australia's decision to cut interest rates for the first time in more than two years underlined weakness in the global economy.
Meanwhile, the euro was fractionally lower against the pound, with EUR/GBP dipping 0.05% to hit 0.8609.
The pound remained under pressure after official data showed that the U.K. economy grew slightly more-than-expected in the third quarter as the service sector expanded, but a separate report showed that manufacturing activity in the U.K. fell to a 28-month low in October.
Later Tuesday, the Institute of Supply Management was to produce a report on U.S. manufacturing activity.