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Forex - EUR/USD slips to 4-day low amid debt concerns

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Forex Pros - The euro slipped to a four-day low against the U.S. dollar on Thursday, amid renewed concerns over the euro zone sovereign debts after Portugal's prime minister resigned following parliaments' rejection of his minority government's austerity program.

EUR/USD hit 1.4054 during late Asian trade, the pair's lowest since March 18; the pair subsequently consolidated at 1.4056, shedding 0.21%.

The pair was likely to find support at 1.3979, the low of March 18 and resistance at 1.4214, Wednesday's high.

On Wednesday, Portugal's parliament rejected a fresh round of budget cuts proposed by Prime Minister Jose Socrates, who immediately tendered his resignation. The move was seen as increasing the likelihood that Portugal will now follow Greece and Ireland in needing a financial bailout.

Also weighing on the euro, were media reports that ratings agency Moody's planned to downgrade the ratings of Spanish banks later in the day.

The euro was also lower against the pound, with EUR/GBP dipping 0.05% to hit 0.8672.

Later in the day, the euro zone was to publish official data on activity in the manufacturing and services sectors, while the U.S. was to release a weekly report on initial jobless claims and durable goods orders.

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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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