Investing.com – The euro slipped against the U.S. dollar on Monday, as initial optimism over a deal to form a coalition government in Greece was replaced by concerns over fresh political instability in Italy.
EUR/USD hit 1.3733 during late Asian trade, the session low; the pair subsequently consolidated at 1.3738, shedding 0.39%.
The pair was likely to find support at 1.3655, last Thursday’s low and resistance at 1.3868, Friday’s high.
On Sunday, Greek Prime Minister George Papandreou announced that he would step down, paving the way for the formation of a new coalition government, which will oversee elections and ratify austerity measures to ensure the country receives its next tranche of bailout funds.
But the euro remained under pressure amid uncertaity over who would lead the new government and the timing of elections.
Meanwhile, Italian borrowing costs soared ahead of a parliamentary vote on public finances Tuesday, amid open dissent within Prime Minister Silvio Berlusconi's government.
The euro was also lower against the pound, with EUR/GBP shedding 0.25% to hit 0.8579.
Later in the day, the euro zone was to release official data on retail sales, while Germany was to publish government data on industrial production.
EUR/USD hit 1.3733 during late Asian trade, the session low; the pair subsequently consolidated at 1.3738, shedding 0.39%.
The pair was likely to find support at 1.3655, last Thursday’s low and resistance at 1.3868, Friday’s high.
On Sunday, Greek Prime Minister George Papandreou announced that he would step down, paving the way for the formation of a new coalition government, which will oversee elections and ratify austerity measures to ensure the country receives its next tranche of bailout funds.
But the euro remained under pressure amid uncertaity over who would lead the new government and the timing of elections.
Meanwhile, Italian borrowing costs soared ahead of a parliamentary vote on public finances Tuesday, amid open dissent within Prime Minister Silvio Berlusconi's government.
The euro was also lower against the pound, with EUR/GBP shedding 0.25% to hit 0.8579.
Later in the day, the euro zone was to release official data on retail sales, while Germany was to publish government data on industrial production.