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Forex - EUR/USD extends losses as Greece concerns intensify

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Forex Pros - The euro extended losses against the U.S. dollar on Thursday, as comments by a member of the European Central Bank's governing council sparked fears of debt contagion among peripheral euro zone members.

EUR/USD hit 1.4074 during European early afternoon trade, the pair's lowest since May 26; the pair subsequently consolidated at 1.4121 shedding 0.41%.

The pair was likely to find support at 1.4001, the low of May 24 and resistance at 1.4450, Wednesday's high.

Earlier in the day, ECB Governing Council member Nout Wellink that the euro zone's bail-out fund should be doubled in size to EUR1.5 trillion.

The comments sparked contagion fears as he said that such an increase in the size of the bail-out fund would be needed to secure private-sector support for a second Greek aid package and to cover potential risks from Ireland and Portugal.

Meanwhile, violent protests in Athens against government austerity measures added to concerns that political turmoil in the country may delay a second bail-out.

The euro fell to a record low against the Swiss franc, with EUR/CHF tumbling 0.91% to hit 1.1981.

Later Thursday, the U.S. was to publish a weekly report on initial jobless claims, as well as data on building permits, housing starts and manufacturing activity.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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