Investing.com – The euro extended losses against the U.S. dollar on Monday, falling to a fresh daily low as political uncertainty in Ireland raised fresh fears over the country’s economic outlook.
EUR/USD hit 1.3618 during European afternoon trade, the daily low; the pair subsequently consolidated at 1.3626, shedding 0.34%.
The pair was likely to find support at 1.3524, last Thursday’s low and resistance at 1.3937, the high of November 9.
Earlier in the day, Ireland's Green party, the junior coalition partner in the government, said a general election should be held in January after the European Union/International Monetary Fund bailout package is in place.
Meanwhile, an independent Irish government member said he was unlikely to support the country’s 2011 budget. The Irish government, which holds a thin majority, needs the support of independent parties to pass its budget.
The news came after rating agency Moody's said a "multi-notch downgrade" on Ireland’s credit rating was now likely.
On Sunday, Ireland formally applied for aid from the EU and the IMF. Earlier Monday, Ireland’s Finance Minister Brian Lenihan reiterated that the loan, to shore up the country’s public finances and stricken banking sector, would not exceed EUR100 billion.
The euro was also down against the pound, with EUR/GBP shedding 0.18% to hit 0.8539.
Also Monday, German Finance Minister Wolfgang Schaeuble played down the risk of market problems spreading to other high-deficit countries. "If we now find the right answer to the Irish problem, then the chances are great that there will be no contagion effects," he said.
EUR/USD hit 1.3618 during European afternoon trade, the daily low; the pair subsequently consolidated at 1.3626, shedding 0.34%.
The pair was likely to find support at 1.3524, last Thursday’s low and resistance at 1.3937, the high of November 9.
Earlier in the day, Ireland's Green party, the junior coalition partner in the government, said a general election should be held in January after the European Union/International Monetary Fund bailout package is in place.
Meanwhile, an independent Irish government member said he was unlikely to support the country’s 2011 budget. The Irish government, which holds a thin majority, needs the support of independent parties to pass its budget.
The news came after rating agency Moody's said a "multi-notch downgrade" on Ireland’s credit rating was now likely.
On Sunday, Ireland formally applied for aid from the EU and the IMF. Earlier Monday, Ireland’s Finance Minister Brian Lenihan reiterated that the loan, to shore up the country’s public finances and stricken banking sector, would not exceed EUR100 billion.
The euro was also down against the pound, with EUR/GBP shedding 0.18% to hit 0.8539.
Also Monday, German Finance Minister Wolfgang Schaeuble played down the risk of market problems spreading to other high-deficit countries. "If we now find the right answer to the Irish problem, then the chances are great that there will be no contagion effects," he said.