Forex – EUR/USD falls on Portuguese bank concerns


Euro slides after Portugal bank fears rattle euro zoneEuro slides after Portugal bank fears rattle euro zone – The euro dropped against the dollar on Thursday amid concerns that Portugal’s largest financial institution may be in trouble.

In U.S. trading, EUR/USD was down 0.32% at 1.3597, up from a session low of 1.3589 and off a high of 1.3651.

The pair was likely to find support at 1.3576, Monday’s low, and resistance at 1.3700, the high from July 1.

The parent of Portugal’s largest bank, Banco Espírito Santo, said it missed payments on commercial paper to a few clients, which spooked markets by fueling concerns surrounding the soundness of the banking sectors in Portugal as well as in Spain and Italy.

Elsewhere, weak euro zone factory data bruised the single currency.

Italy’s industrial output unexpectedly fell 1.2% in May from April, defying expectations for a 0.2% expansion, while French industrial production plunged 1.7% in May, also confounding expectations for a 0.2% gain.

Meanwhile in the U.S., solid jobless claims numbers supported the greenback.

The U.S. Department of Labor reported earlier that the number of individuals filing for initial jobless benefits in the week ending July 5 declined by 11,000 to 304,000. Analysts had expected jobless claims to hold steady at 315,000 last week.

Elsewhere, the euro was down against the pound, with EUR/GBP down 0.05% at 0.7946, and down against the yen, with EUR/JPY down 0.66% at 137.73.

Source By Breaking News Website | BreakingNews.WS