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Forex - EUR/USD steady after slipping on Egypt turmoil

Published 01/31/2011, 02:34 AM
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Investing.com – The euro was steady against the U.S. dollar on Monday, as risk aversion eased but markets remained cautious amid fears that ongoing political turmoil in Egypt could spread across the region.

EUR/USD hit 1.3625 during late Asian trade, the daily high; the pair subsequently consolidated at 1.3623, easing up 0.09%.

The pair was likely to find short-term support at 1.3539, the low of January 24 and resistance at 1.3757, last Thursday’s high.

Egyptian protesters congregated in central Cairo on Monday and vowed to stay until President Hosni Mubarak had left office.

Markets remained wary amid uncertainty over whether similar protests could spread to nations with rich oil reserves such as Yemen, Jordan and Saudi Arabia, which would severely hurt the global supply of crude oil.

Meanwhile, the euro was slightly lower against the pound, with EUR/GBP dipping 0.03% to hit 0.8578.

Also Monday, official data showed that German retail sales declined unexpectedly in December, down for a second month.

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