Euro under pressure, but major Asia markets bounce

London - The euro struggled on Wednesday on increasing uncertainty about France's political outlook and fears of another debt crisis brewing in Greece.

"Given Brexit and Trump, it has been a while since the eurozone has been given so much attention," noted Spreadex analyst Connor Campbell.

Most major equities markets pushed higher but confidence remains shaky over worries about Donald Trump and uncertainty about his impact on the global economy.

Wall Street continues to touch record highs on hopes Trump will enact business-friendly measures. But Asian dealers are less sanguine following a series of outbursts that have included warnings of protectionism and depictions of Japan and China as trade cheats.

Against that background, traders are growing increasingly concerned about rising populism across the world - particularly following Trump and Brexit - with far-right presidential candidate Marine Le Pen echoing many of the tycoon's themes.

There are also elections in Germany, Italy and the Netherlands this year, with similar issues in those countries fuelling fears the European Union could break up.

The euro slid to $1.0652 on Wednesday, from highs of above $1.08 at the start of the week.

"While it is premature to draw any definitive conclusion, the political landscapes in both France and Italy are coming under immense scrutiny from investors, which should keep euro upticks limited," said Oanda trader Stephen Innes.

"If we factor in a possibly divisive German election, risks are rising immensely on the European political stage."

Greek debt saga returns

Greece's debt saga also reared its head after the International Monetary Fund warned the country would likely not reach targets prescribed for it to qualify for bailout cash.

While Athens dismissed the report, the comments sent Greece's cost of borrowing soaring on bond markets and raised the spectre of another crisis for the EU to juggle.

Oil prices extended losses after key data showed that US stockpiles soared last week and expectations that a US government report later on Wednesday would similarly point to an increase.

However, the commodity pared initial drops after Qatar's energy minister, the current OPEC president, said world oil markets were "responding positively" to output cuts implemented by the cartel and some non-cartel producers this year.

Both main contracts fell more than 1% on Tuesday.