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Forex - EUR/USD hits 8-day low as euro zone debt fears weigh

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Forexpros - The euro extended losses against the U.S. dollar on Tuesday, falling to an eight-day low amid renewed worries over the debt crisis in the euro zone and concerns over the global economic recovery, while a deal to raise the U.S. debt ceiling boosted the dollar.

EUR/USD hit 1.4159 during European late morning trade, the pair's lowest since July 21; the pair subsequently consolidated at 1.4191, shedding 0.40%.

The pair was likely to find support at 1.4067, the low of July 19 and resistance at 1.4368, the high of July 8.

Earlier Tuesday, Italian and Spanish bond yields advanced to 14-year highs, amid fresh worries that the sovereign debt crisis in the euro zone could spread to core economies in spite of the recent bailout deal for Greece.

Meanwhile, the outlook for global economic growth remained downbeat after data on Monday showed that the U.S. Institute for Supply Management's Manufacturing Index fell to its lowest level in two years in July.

Elsewhere, concerns that the deal to raise the U.S. debt ceiling would not be sufficient to prevent ratings agencies from cutting the U.S. sovereign debt rating continued to weigh.

The euro was also lower against the pound, with EUR/GBP shedding 0.22% to hit 0.8723.

Later Tuesday, the U.S. Senate was due to hold a final vote on a measure to raise the U.S. debt ceiling by at least USD2.1 trillion and cut federal spending by as much as USD2.4 trillion.

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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.

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