OTTAWA (Alliance News) - The euro extended its early decline against the other major currencies in New York deals on Tuesday, as traders cautiously await German parliamentary vote on the third Greek bailout due Wednesday, amid rebellion among lawmakers of Chancellor Angela Merkel's party over Greece.
The Christian Democrats and their Bavarian Christian Social Union are skeptical about a third bailout for Greece. But Merkel's coalition partner, the Social Democrats, and the opposition Greens are in favour of the bailout, with approval looks certain.
Spanish, Estonian and Austrian MPs are voting today, as Greece faces EUR 3.2 billion payment to the European Central Bank on August 20.
Meanwhile, reports that the Greek government is facing a vote of confidence by Thursday cast uncertainty over the implementation of the bailout. If the Greek Prime Minister Alexis Tsipras loses the confidence vote, it could trigger a snap election.
The currency has been trading in a negative territory in the European session.
The euro hit weekly lows of 1.0785 against the franc and 137.11 against the yen, from its previous highs of 1.0852 and 137.92, respectively. The euro closed Monday's trading at 1.0838 against the franc and 137.76 against the yen. If the euro extends decline, it may challenge support around 1.05 against the franc and 136.00 against the yen.
The single currency declined to a 1-week low of 1.1022 against the greenback and an 11-day low of 0.7025 against the pound, coming off from an early high of 1.1095 and a 4-day high of 0.7118, respectively. At Monday's close, the euro was trading at 1.1079 against the greenback and 0.7108 against the pound. Further weakness may take the euro to support levels of around 1.09 against the greenback and 0.69 against the pound.
The 19-nation currency that ended Monday's trading at 1.4486 against the Canadian dollar hit a weekly low of 1.4428. The euro is seen finding support around the 1.43 level.
