Investing.com – The euro plunged against the U.S. dollar Thursday, as the much anticipated Italian bond auction failed to meet the target, increasing debt crisis fears.
EUR/USD hit a low of 1.2858 during mid session U.S. trade. The pair is off a high of 1.2960 and is currently trading at 1.2938 down 0.02%.
The pair was likely to find short term support at 1.2918 and intraday technical resistance exists at 1.2967.
Light Christmas and New Years holiday volume added to the volatility as traders relaxed in preparation for 2012
Italy's Treasury long term bond auction missed targets increasing debt fears weighing on the single currency.
Mary Nicola of BNP Paribas SA explained to Bloomberg, "If you look at where the 10 year Italian yields are, they're still nearing 7% and the German 10 year is down. The spread is widening, so that can't bode well for the euro."
This added to fears that the ECB's crisis lending programs have not helped the banking sector.
Meanwhile, the euro fell to a 10 year low against the yen on fears of further cash injections by the European Central Bank
The Euro advanced against the pound with EUR/GBP gaining 0.43% to 0.8409.
Investors are awaiting data on U.S. crude oil stockpiles.
EUR/USD hit a low of 1.2858 during mid session U.S. trade. The pair is off a high of 1.2960 and is currently trading at 1.2938 down 0.02%.
The pair was likely to find short term support at 1.2918 and intraday technical resistance exists at 1.2967.
Light Christmas and New Years holiday volume added to the volatility as traders relaxed in preparation for 2012
Italy's Treasury long term bond auction missed targets increasing debt fears weighing on the single currency.
Mary Nicola of BNP Paribas SA explained to Bloomberg, "If you look at where the 10 year Italian yields are, they're still nearing 7% and the German 10 year is down. The spread is widening, so that can't bode well for the euro."
This added to fears that the ECB's crisis lending programs have not helped the banking sector.
Meanwhile, the euro fell to a 10 year low against the yen on fears of further cash injections by the European Central Bank
The Euro advanced against the pound with EUR/GBP gaining 0.43% to 0.8409.
Investors are awaiting data on U.S. crude oil stockpiles.