Investing.com – The euro extended early losses against the U.S. dollar on Tuesday, tumbling to a 10-day low as risk aversion returned after China’s central bank unexpectedly hiked interest rates.
EUR/USD hit 1.3770 during European afternoon trade, the pair’s lowest since October 5; the pair subsequently consolidated at 1.3784, tumbling 1.07%.
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.
Earlier in the day, the People’s Bank of China said it had raised its benchmark deposit and lending rates by 0.25% for the first time since December 2007. China cut interest rates several times between September and December of 2008 as the financial crisis began to take hold.
The move sparked fears over a potential slowdown in the rate of global economic growth and saw investors return to the safe haven of the U.S. dollar.
The euro was also down against the pound, with EUR/GBP shedding 0.08% to hit 0.8771.
Also Tuesday, official data showed that U.S. building permits fell unexpectedly in October while housing starts rose more-than-expected.
EUR/USD hit 1.3770 during European afternoon trade, the pair’s lowest since October 5; the pair subsequently consolidated at 1.3784, tumbling 1.07%.
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.
Earlier in the day, the People’s Bank of China said it had raised its benchmark deposit and lending rates by 0.25% for the first time since December 2007. China cut interest rates several times between September and December of 2008 as the financial crisis began to take hold.
The move sparked fears over a potential slowdown in the rate of global economic growth and saw investors return to the safe haven of the U.S. dollar.
The euro was also down against the pound, with EUR/GBP shedding 0.08% to hit 0.8771.
Also Tuesday, official data showed that U.S. building permits fell unexpectedly in October while housing starts rose more-than-expected.