Forex - EUR/USD slips ahead of Slovak vote on bailout fund

Forex News – The euro slipped against the U.S. dollar on Tuesday, giving up some of Monday’s strong gains as investors awaited the outcome of a vote by Slovakia's parliament to ratify an expansion of the euro zone's rescue fund.

EUR/USD hit 1.3579 during European afternoon trade, the daily low; the pair subsequently consolidated at 1.3605, shedding 0.26%.

The pair was likely to find support at 1.3377, Monday’s low and resistance at 1.3797, the high of September 21.

Slovakia is to be the last of the euro zone's 17 members to vote on a deal to enhance the size and powers of the European Financial Stability Facility, but deep divisions within the government on the issue provoked tensions among investors ahead of the vote.

The euro posted the largest one-day gain against the greenback since July 2010 on Monday, after German Chancellor Angela Merkel and French President Nicolas Sarkozy said they would soon unveil a “comprehensive” plan to stem the debt crisis in the euro zone.

The euro was also lower against the pound, with EUR/GBP dipping 0.04% to hit 0.8703.

Also Tuesday, officials from the European Union, International Monetary Fund and European Central Bank were to release a statement after negotiations with Greece on the country’s next tranche of aid concluded.