Investing.com - The euro extended losses against the U.S. dollar on Monday, as concerns over the outlook for global growth and rising peripheral euro zone bond yields soured sentiment on the single currency.
EUR/USD hit 1.2181 during European afternoon trade, the session low; the pair subsequently consolidated at 1.2196, shedding 0.44%.
The pair was likely to find support at 1.2161, Friday’s low and a two-year trough and near-term resistance at 1.2296, the high of July 11.
The euro came under pressure amid uncertainty over whether some bondholders could be forced to accept losses under the terms of Spain's bank bailout.
The yield on Spanish 10-year bonds rose to 6.71%, re-approaching the critical 7% threshold, widely seen as unsustainable in the long run. The yield on Italian 10-year bonds ticked up to 6.05%.
Elsewhere, Germany’s constitutional court announced that it will deliver a ruling on whether the euro zone’s permanent bailout fund contravenes the German constitution on September 12, disappointing hopes for an earlier decision.
Meanwhile, investors were looking ahead to Fed Chairman Ben Bernanke's testimony on the economic outlook to the Senate on Tuesday and Wednesday, amid ongoing speculation over whether the central bank will introduce more easing measures to stimulate the economy.
The euro shrugged off official data official showing that consumer price inflation in the bloc held steady at 2.4% in June, unchanged from the previous month and in line with market expectations.
Month-on-month, CPI declined 0.1%, compared to expectations for a flat reading, after falling 0.1% in May.
The euro slumped to a three-and-a-half year low against the stronger pound, with EUR/GBP down 0.24% to 0.7845 and fell to a six-week low against the yen, with EUR/JPY down 0.67% to 96.32.
Later Monday, the U.S. was to publish official data on retail sales and business inventories, as well as a report on manufacturing activity in New York. In addition, the International Monetary Fund was to publish forecasts for global economic growth.
EUR/USD hit 1.2181 during European afternoon trade, the session low; the pair subsequently consolidated at 1.2196, shedding 0.44%.
The pair was likely to find support at 1.2161, Friday’s low and a two-year trough and near-term resistance at 1.2296, the high of July 11.
The euro came under pressure amid uncertainty over whether some bondholders could be forced to accept losses under the terms of Spain's bank bailout.
The yield on Spanish 10-year bonds rose to 6.71%, re-approaching the critical 7% threshold, widely seen as unsustainable in the long run. The yield on Italian 10-year bonds ticked up to 6.05%.
Elsewhere, Germany’s constitutional court announced that it will deliver a ruling on whether the euro zone’s permanent bailout fund contravenes the German constitution on September 12, disappointing hopes for an earlier decision.
Meanwhile, investors were looking ahead to Fed Chairman Ben Bernanke's testimony on the economic outlook to the Senate on Tuesday and Wednesday, amid ongoing speculation over whether the central bank will introduce more easing measures to stimulate the economy.
The euro shrugged off official data official showing that consumer price inflation in the bloc held steady at 2.4% in June, unchanged from the previous month and in line with market expectations.
Month-on-month, CPI declined 0.1%, compared to expectations for a flat reading, after falling 0.1% in May.
The euro slumped to a three-and-a-half year low against the stronger pound, with EUR/GBP down 0.24% to 0.7845 and fell to a six-week low against the yen, with EUR/JPY down 0.67% to 96.32.
Later Monday, the U.S. was to publish official data on retail sales and business inventories, as well as a report on manufacturing activity in New York. In addition, the International Monetary Fund was to publish forecasts for global economic growth.