Investing.com – The euro was hovering close to a two-month low against the U.S. dollar on Tuesday, as concerns over mass euro zone downgrades weighed but the single currency found support ahead of the Federal Reserve’s rate decision later in the day.
EUR/USD hit 1.3161 during late Asian trade, the pair’s lowest since October 4; the pair subsequently consolidated at 1.3171, easing down 0.11%.
The pair was likely to find short-term support at 1.3144, the low of October 4 and a 10-month low and resistance at 1.3351, the high of November 25.
The euro was sold off on Monday after last week’s European Union summit failed to produce concrete plans to halt the spread of the debt crisis in the region.
Ratings agency Moody's said it would review ratings of all EU member states in the first quarter of 2012, while Fitch Ratings said the summit had failed to provide a "comprehensive" solution to the debt crisis.
Meanwhile, concerns over mass euro zone downgrades persisted after ratings agency Standard and Poor’s placed 15 euro zone nations on review for a potential downgrade ahead of the summit last week.
S&P cited a lack of political cohesiveness among the group as part of the reason for the region’s debt crisis.
The euro was also lower against the pound, with EUR/USD slipping 0.22% to hit 0.8442.
Later in the day, Germany was to publish a report on economic sentiment. In addition, the Fed was to announce its federal funds rate, while the U.S. was also to release official data on retail sales.
EUR/USD hit 1.3161 during late Asian trade, the pair’s lowest since October 4; the pair subsequently consolidated at 1.3171, easing down 0.11%.
The pair was likely to find short-term support at 1.3144, the low of October 4 and a 10-month low and resistance at 1.3351, the high of November 25.
The euro was sold off on Monday after last week’s European Union summit failed to produce concrete plans to halt the spread of the debt crisis in the region.
Ratings agency Moody's said it would review ratings of all EU member states in the first quarter of 2012, while Fitch Ratings said the summit had failed to provide a "comprehensive" solution to the debt crisis.
Meanwhile, concerns over mass euro zone downgrades persisted after ratings agency Standard and Poor’s placed 15 euro zone nations on review for a potential downgrade ahead of the summit last week.
S&P cited a lack of political cohesiveness among the group as part of the reason for the region’s debt crisis.
The euro was also lower against the pound, with EUR/USD slipping 0.22% to hit 0.8442.
Later in the day, Germany was to publish a report on economic sentiment. In addition, the Fed was to announce its federal funds rate, while the U.S. was also to release official data on retail sales.