Investing.com - The euro was broadly lower against its global counterparts on Monday, as fresh concerns over the threat of sovereign debt contagion from Spain weighed but the single currency found support following reports that Germany will support a combined rescue fund for the region.
During European late morning trade, the euro was lower against the U.S. dollar, with EUR/USD slipping 0.13% to hit 1.3253.
Sentiment on the single currency was hit earlier after Italian Prime Minister Mario Monti warned over the weekend that the threat of contagion from Spain could cause the debt crisis in the euro zone to flare up again.
Concerns over Spain overshadowed a report showing that German business confidence improved in March.
The Ifo Institute said earlier that its index of German business confidence inched up to 109.8, from a reading of 109.6 in February. Analysts had expected the index to ease up to 109.7 this month.
But the euro found support following German media reports that Chancellor Angela Merkel and Finance Minister Wolfgang Schäuble will support an initiative to combine the region’s two bailout funds, to give a combined fund of EUR700 billion to fight the euro zone debt crisis.
The shared currency was down against the pound, with EUR/GBP shedding 0.25% to hit 0.8340.
But the euro was higher against the yen, with EUR/JPY climbing 0.64% to hit 109.97.
The single currency was steady against the Swiss franc, with EUR/CHF inching up 0.03% to hit 1.2053.
The shared currency was weaker against the Canadian, Australian and New Zealand dollars, with EUR/CAD shedding 0.28% to hit 1.3204, EUR/AUD sliding 0.22% to hit 1.2648 and EUR/NZD dipping 0.09% to hit 1.6203.
Earlier in the day, official data showed that New Zealand posted a trade surplus of NZD161 million in February, after posting a deficit of NZD159 million the previous month.
Analysts had expected a trade surplus of NZD154 million last month.
Later Monday, the U.S. was to publish industry data on pending home sales, while Federal Reserve Chairman Ben Bernanke and European Central Bank President Mario Draghi were both to speak.
During European late morning trade, the euro was lower against the U.S. dollar, with EUR/USD slipping 0.13% to hit 1.3253.
Sentiment on the single currency was hit earlier after Italian Prime Minister Mario Monti warned over the weekend that the threat of contagion from Spain could cause the debt crisis in the euro zone to flare up again.
Concerns over Spain overshadowed a report showing that German business confidence improved in March.
The Ifo Institute said earlier that its index of German business confidence inched up to 109.8, from a reading of 109.6 in February. Analysts had expected the index to ease up to 109.7 this month.
But the euro found support following German media reports that Chancellor Angela Merkel and Finance Minister Wolfgang Schäuble will support an initiative to combine the region’s two bailout funds, to give a combined fund of EUR700 billion to fight the euro zone debt crisis.
The shared currency was down against the pound, with EUR/GBP shedding 0.25% to hit 0.8340.
But the euro was higher against the yen, with EUR/JPY climbing 0.64% to hit 109.97.
The single currency was steady against the Swiss franc, with EUR/CHF inching up 0.03% to hit 1.2053.
The shared currency was weaker against the Canadian, Australian and New Zealand dollars, with EUR/CAD shedding 0.28% to hit 1.3204, EUR/AUD sliding 0.22% to hit 1.2648 and EUR/NZD dipping 0.09% to hit 1.6203.
Earlier in the day, official data showed that New Zealand posted a trade surplus of NZD161 million in February, after posting a deficit of NZD159 million the previous month.
Analysts had expected a trade surplus of NZD154 million last month.
Later Monday, the U.S. was to publish industry data on pending home sales, while Federal Reserve Chairman Ben Bernanke and European Central Bank President Mario Draghi were both to speak.