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Forex - EUR/USD steady close to 4-month lows

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Investing.com - The euro was trading close to four-month lows against the dollar on Wednesday amid a combination of concerns over the financial stability of the euro zone following Cyprus's last minute bailout and ongoing political uncertainty in Italy.

EUR/USD hit 1.2838 during late Asian trade, the session low; the pair subsequently consolidated at 1.2849, slipping 0.09%.

The pair was likely to find near-term support at 1.2827, Tuesday's low and a four-month low and resistance at 1.2954, the high of March 21.

The euro remained under pressure amid wariness that the bailout deal for Cyprus could set a precedent for future bailouts in larger euro zone states with troubled financial sectors, with bank depositors and bond holders forced to foot the bill.

Elsewhere, talks in Italy aimed at forming a coalition government continued after general elections in late February resulted in a political stalemate, amid growing concerns that the country may have to return to the polls.

The euro was lower against the pound, with EUR/GBP slipping 0.09% to 0.8476, but pushed higher against the yen, with EUR/JPY rising 0.24% to 121.75.

The yen remained under pressure as expectations for more aggressive easing measures by the Bank of Japan remained intact.

Italy was to hold an auction of 10-year government bonds later Wednesday, while thw U.S was to release a private sector report on pending home sales.

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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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