Forex - EUR/USD edges higher, upside limited
Investing.com
Published Apr 12, 2012 01:26AM ET
EUR/USD hit 1.3139 during late Asian trade, the daily high; the pair subsequently consolidated at 1.3136, adding 0.21%.
The pair was likely to find support at 1.3065, Wednesday’s low and resistance at 1.3186, the high of March 16.
Concerns over the financial crisis in the euro zone slightly eased after an ECB policymaker said on Wednesday the bank still has its bond-buying program as an option, adding that the scale of market pressure on Spain is not justified given the reforms being undertaken by its government.
Although Spanish 10-year bond yields retreated following the comments as well as remarks from the country’s prime minister, pledging to implement further austerity measures as soon as this month, they remained close to 6% earlier Thursday.
Meanwhile, the single currency also remained under pressure as Italy was preparing to sell EUR5 billion of three-year government bonds later in the day.
Rome saw its one-year borrowing costs rise for the first time since November, in a poorly received government bond auction on Wednesday.
Elsewhere, the euro was fractionally higher against the pound with EUR/GBP edging up 0.08%, to hit 0.8248.
Later in the day, the euro zone was to release a report on industrial production, while the U.S. was to produce official data on the trade balance and initial unemployment claims.
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Written By: Investing.com
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