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Forex - EUR/USD extends losses as EU finance ministers meet in Brussels

Published 09/07/2010, 05:38 AM
EUR/USD
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EUR/GBP
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Investing.com – The euro extended losses against the U.S. dollar on Tuesday, falling to a fresh 4-day low, as European Union finance ministers held meetings in Brussels to discuss new banking regulations.

EUR/USD hit 1.2750 during late European morning trade, the pair’s lowest since September 1; the pair subsequently consolidated at 1.2767, shedding 0.84%.

The pair is likely to find support at 1.2664, the low of September 1, and resistance at 1.2917, Monday’s high.

Earlier in the day, European Commissioner for Economic and Monetary Affairs, Olli Rehn urged caution over the euro zone’s economic outlook, saying “We are certainly not out of the woods yet".

His comments came after Monday’s report from Germany’s Banking Association, which renewed concerns over the health of euro zone banks.

The report showed that Germany’s 10 largest banks would need EUR 105 billion of additional capital in order to meet new banking regulations put in place to prevent future financial crises.

The euro was also down against the pound, with EUR/GBP shedding 0.70% to hit 0.8305.

Later in the day, Germany was to release key data on factory orders.

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