Midday trade in New York: euro slides to two-week low versus dollar

08 Feb, 2011

The euro fell against the US dollar for a fourth straight day on Monday, with more losses seen likely, as soft German industrial data reinforced the view that eurozone interest rates will remain low for some time. European Central Bank President Jean-Claude Trichet doused expectations of an imminent rate increase last week, saying inflation would remain contained.
The German data bolstered that view, prompting investors to further book profits after the single currency's new year rally. The euro hit a two-week low, falling below the current 100-day simple moving average, a key support, at around $1.3532. Investors focused on $1.3500, followed by $1.3480, the 38.2 percent retracement of the January-to-February rally.
In mid-day New York trading, the euro slipped 0.2 percent to $1.3561, extending losses made after the US payrolls report on Friday. It hit a low of $1.3508 on electronic trading platform EBS. The dollar added 0.2 percent at 82.38 yen after rising more than 1 yen from a one-month low of 81.10 hit just after the Friday jobs data. Resistance is at 82.56, the top of the Ichimoku cloud, a closely watched technical indicator.

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