Forex - EUR/USD lower on Greek concerns, Portuguese yields

Forexpros -  The euro fell against the U.S. dollar on Monday, as Greek debt worries and soaring Portuguese bond yields fanned European nation default worries.
 
EUR/USD traded to a high of 1.3227 and posted a low of 1.3077. It is currently trading at 1.3121,  down 0.74% on the session.
 
The pair was likely to find support at 1.2952, the low of January 24 and technical resistance exists at 1.3227, the session’s and six week high.
 
The single currency was weakened as the yield on Portugal’s ten year bonds soared 199 basis points hitting a euro era record of 17.22%. Credit default swaps also climbed to a record in the struggling nation, forecasting a 71% chance the government will default.
 
Greece’s private creditors signaled they will accept European government demands for a larger decrease in their debt holdings, as well as a debt deal is expected within the next several days.
 
However, Greek Finance Minister Evangelos Venizelos abandoned a German plan to have a European Union commission evaluate the Greece’s budget policy, triggering additional default worries.
 
In other euro negative news, an index of consumer and executive sentiment in the euro zone climbed less than expected to 93.4 from a revised 92.8 in December.  Economists were expecting a rise to 93.8.
 
The first European leader summit of 2012 began in Brussels. Topics of discussion include a German led deficit control treaty, the Greek situation, and the statutes of a EUR500 billion rescue fund to be set up later in the year.
 
Italy successfully auctioned EUR7.48 billion of long term government debt at lower yields than similar auctions, helping to support the euro on this bearish day.
 
Preliminary German data indicated that consumer price inflation eased by 0.4% in January, broadly in line with expectations for a 0.5% decline.
 
Meanwhile in the United States, data showed personal spending was flat in December, missing estimates for a 0.2% increase.
 
The euro fell against the pound with EUR/GBP giving back 0.43% to 0.8370.