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Forex - EUR/USD hits 3-day low amid euro zone recovery fears

Published 08/19/2010, 02:30 AM
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Investing.com – The euro was down against the U.S. dollar on Thursday, falling to hit a 3-day low, after a report suggested that Europe's economic recovery is flagging.

EUR/USD hit 1.2781 during late Asian trade, the pair's lowest since August 16; the pair subsequently consolidated at 1.2817, shedding 0.28%.

The pair was likely to find short-term support at 1.2733, the low of August 16 and resistance at 1.2922, Wednesday's high.

Late Wednesday, German magazine Der Spiegel said in a report that austerity measures aimed at fixing Greece's debt crisis are damaging the country's economy. The report claimed that Greece's unemployment rate is as high as 70% in some areas.

The International Monetary Fund expects Greek unemployment to reach 12% this year and 13% in 2011.

The euro was also down against the pound, with EUR/GBP shedding 0.04% to hit 0.8238.

Earlier in the day, official data showed that Germany's producer price index rose more than expected in July.


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