FOREX-Euro hurt as peripheral debt jitters resurface

* Euro down 0.8 pct vs dollar; down 1.0 pct vs yen

* Euro zone peripheral yield spreads widen

* Friday’s robust U.S. jobs data support dollar

(Releads, adds quote, updates prices)

By Tamawa Desai

LONDON, Nov 8 (BestGrowthStock) – The euro fell (Read more about the trembling euro. ) broadly on Monday on
renewed concerns about euro zone peripheral debt while Friday’s
solid U.S. jobs data supported the dollar.

With the U.S. Federal Reserve’s decision to launch more
quantitative easing out of the way, euro zone debt problems
seemed to have resurfaced on traders’ radars.

“Now that QE by the Fed has become a fact, the market is
paying attention to other factors that were overshadowed ahead
of the Fed meeting,” said Roberto Mialich, currency strategist
at Unicredit in Milan.

“Also, stronger-than-expected U.S. payrolls sparked more
position adjustments and profit-taking on the euro. I see a
consolidation of the euro between $1.38 and $1.40 during the

He said traders may be cautious about chasing the dollar too
high ahead of the Group of 20 summit meeting in Seoul later this
weekend, which may address imbalances.
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By 0906 GMT, the euro (EUR=: ) had fallen 0.8 percent to
$1.3921. It earlier hit a session low of $1.3906 after falling
through support of $1.3920, the 61.8 percent retracement of its
Oct. 20 to Nov. 4 rally to a 10-month high of $1.4283.

More support was seen at $1.3835, the 76.4 percent
retracement, with some eyeing a fall toward $1.3750, the
currency having hit a late October low of $1.3756.

“Tensions have already resurfaced significantly with
increasingly unsustainable market funding costs for Ireland and
Portugal,” said Lee Hardman, currency economist at Bank of
Tokyo-Mitsubishi UFJ.

The 10-year Irish bond yield spread over benchmark German
debt widened on Monday [ID:nLDE6A70HQ], while investors eyed a
government bond auction by Portugal this week. [ID:nLDE6A41QZ]

The euro fell (Read more about the trembling euro. ) 1.1 percent against the yen (EURJPY=R: ) to hit
the day’s low of 112.67 yen, according to Reuters data, taking
it through reported stop-loss orders at 112.70/80 which the
market had been targeting, traders said. It also fell almost 0.5
percent against the pound to 86.26 pence (EURGBP=D4: ).

Euro/yen selling weighed on other currencies against the

The dollar fell 0.1 percent against the yen at 81.14 yen
(JPY=: ) but remained above its 15-year low of 80.21 yen plumbed
last week as the U.S. currency gained broadly.

But traders said they expected the dollar’s upside to be
limited as offers were lined up around 82 yen.

Japanese finance ministry data on Monday showed Tokyo
stepped into the currency market to sell yen for dollars only
once in September, on Sept. 15. [ID:nTOE6A7001]

The dollar index (Read more about the global trade. ) (=USD: ), a measure of its performance
against a basket of currencies, rose 0.6 percent to 76.990 as
the greenback gained after U.S. jobs data blew past expectations
on Friday. [ID:nN04265378]

The Australian dollar (AUD=D4: ) fell 0.5 percent to $1.0103,
off a 28-year peak of $1.0183 scaled on Friday. The New Zealand
dollar fell more than 1 percent to a low of $0.7868 (NZD=D4: ).
(Editing by Catherine Evans)

FOREX-Euro hurt as peripheral debt jitters resurface