Investing.com - The euro fell against the U.S. dollar on Wednesday, nearing a 21-month low as markets were jittery ahead of a key European Union summit later in the day and amid fears of a possible Greek exit from the euro zone.
EUR/USD hit 1.2646 during late Asian trade, the pair’s lowest since May 18; the pair subsequently consolidated at 1.2675, edging down 0.06%.
The pair was likely to find support at 1.2623, the low of January 13 and a 21-month low and resistance at 1.2748, the high of May 17.
Sentiment was hit after former Greek Prime Minister Lucas Papademos said late Tuesday evening that Greece had no choice but to stick with a painful austerity program or face a damaging exit from the euro zone, a risk he said was unlikely to materialize but was real.
Meanwhile, investors eyed a meeting of European leaders later in the day, amid concerns over a divide between France's new President Francois Hollande, who favors measures designed to support growth and pro-austerity Germany.
President Hollande was expected to propose the introduction of joint euro bonds at the summit, but Germany has repeatedly resisted the idea, arguing they would lessen pressure for heavily indebted countries to get their finances in order.
Elsewhere, the euro was steady against the pound with EUR/GBP easing 0.02%, to hit 0.8047.
Later in the day, the euro zone was to release official data on industrial new orders, while the U.S. was to publish a report on new home sales.
EUR/USD hit 1.2646 during late Asian trade, the pair’s lowest since May 18; the pair subsequently consolidated at 1.2675, edging down 0.06%.
The pair was likely to find support at 1.2623, the low of January 13 and a 21-month low and resistance at 1.2748, the high of May 17.
Sentiment was hit after former Greek Prime Minister Lucas Papademos said late Tuesday evening that Greece had no choice but to stick with a painful austerity program or face a damaging exit from the euro zone, a risk he said was unlikely to materialize but was real.
Meanwhile, investors eyed a meeting of European leaders later in the day, amid concerns over a divide between France's new President Francois Hollande, who favors measures designed to support growth and pro-austerity Germany.
President Hollande was expected to propose the introduction of joint euro bonds at the summit, but Germany has repeatedly resisted the idea, arguing they would lessen pressure for heavily indebted countries to get their finances in order.
Elsewhere, the euro was steady against the pound with EUR/GBP easing 0.02%, to hit 0.8047.
Later in the day, the euro zone was to release official data on industrial new orders, while the U.S. was to publish a report on new home sales.