Forex - EUR/CHF pulls back from record low after Italian debt auction
Investing.com
Published Jul 12, 2011 09:08AM ET
EUR/CHF clawed back up from 1.1555 the pair’s all-time low, to hit 1.1675 during European afternoon trade, still down 0.32% on the day.
The pair was likely to find support at 1.1555, the days low and resistance at 1.1920, Monday’s high.
Italy auctioned the targeted amount of EUR6.75 billion of 12-month Treasury bills but bond yields rose to 3.6%, their highest level since September 2008.
Earlier in the day, the yield on 10-year Italian bonds surged to a euro-lifetime high before easing back amid fears that the euro zone’s sovereign debt crisis could spread from Greece to Italy, the single currency bloc’s third largest economy.
Meanwhile, Dutch Finance Minister Jan Kees de Jager said earlier that the possibility of a partial default by Greece in order to put the country’s debt on a more sustainable footing could no longer be ruled out, despite the ECB’s opposition to such a move.
The euro also pared losses against the yen, clawing back from 109.59, to hit 111.67, still down 0.82% on the day.
Elsewhere Tuesday, finance ministers from all 27 European Union nations were meeting to discuss measures to contain the debt crisis.
Options included increasing the size and flexibility of the euro zone’s bailout fund, the European Financial Stability Facility and lengthening the maturities of loans and lowering interest rates for bailed out countries.
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Written By: Investing.com
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