Forex - EUR/USD hits 3-day low as EU debt fears lingers
Investing.com
Published Jul 18, 2011 02:38AM ET
EUR/USD hit 1.4050 during late Asian trade, the pair’s lowest since July 13; the pair subsequently consolidated at 1.4061, shedding 0.65%.
The pair was likely to find support at 1.3950, the low of July 13 and resistance at 1.4198, Friday’s high.
Euro zone finance ministers were to meet Thursday to focus on “the financial stability of the euro area as a whole and the future financing of the Greek program,” according to the president of the European Council, Herman Van Rompuy.
The second summit in less than a month follows a worsening of the crisis that pushed Italy to the attention of investors and drove bond yields to euro-lifetime highs across Europe’s most debt-laden nations.
The European Banking Authority said Friday that eight banks out of the region’s 90 top lenders failed its stress tests, with a combined capital shortfall of EUR2.5 billion.
The EBA said 16 banks narrowly passed the stress tests. Of the banks that failed the tests, five were in Spain, two in Greece and one in Austria, while all of the region’s biggest firms passed the test.
While the results were better-than-expected, the tests did not include the possibility of a sovereign debt default, which many believe was a likely outcome for Greece.
The euro was also down against the pound, with EUR/GBP slumping 0.53% to hit 0.8727.
Later in the day, the U.S. was to publish a government report on the balance of domestic and foreign investments.
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Written By: Investing.com
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