Forex – EUR/USD hits 2-day low after Papandreou remarks

Forex Pros – The euro fell to a 2-day low against the U.S. dollar on Tuesday after Greek Prime Minister George Papandreou warned that if his country's debt crisis deteriorated, it could spark a new global financial meltdown. 

EUR/USD sank to 1.3596 shortly before the European trading session, its lowest rate since Friday; the pair subsequently consolidated around 1.3608, shedding 0.19%. 

The pair was likely to find resistance at 1.3839, the high of Feb. 9, and support at 1.3434, last Tuesday's low and a 9-month low.  

The single European currency also weakened against the yen, with EUR/JPY sliding 0.56% to reach 122.44. 

On Monday, Papandreou said that if the turmoil in Greece “metastasizes” it “could create a new global financial crisis with implications as grave as the U.S.-originated crisis two years ago,” Bloomberg reported. 

Later Tuesday, the Greek premier was set to meet with U.S. President Barack Obama in Washington. 

Meanwhile, France was set on Tuesday to publish its trade balance, the difference in value between exported and imported goods.