Investing.com - The euro hovered close to an eleven-month low against the U.S. dollar on Thursday, amid uncertainty over the effects of an unprecedented refinancing operation by the European Central Bank on Wednesday.
EUR/USD hit 1.3073 during late Asian trade, the daily high; the pair subsequently consolidated at 1.3076, rising 0.20%.
The pair was likely to find support at 1.2956, the low of December 15 and resistance at 1.3131, the high of December 20.
The ECB’s first ever three-year loan package failed to ease concerns over the debt crisis in the euro zone as investors were uncertain whether it would increase bond purchases from indebted euro zone states, pulling down their borrowing costs.
The central bank allotted EUR489.19 billion, the largest amount ever allotted for a long-term refinancing operation, in an attempt to avoid a liquidity crunch in the single currency bloc.
But the unexpected heavy demand from 523 European lenders highlighted the severity of the region’s financial crisis and its effects on the banking industry.
Elsewhere, the euro was up against the pound with EUR/GBP adding 0.12%, to hit 0.8334.
Later in the day, the U.S. was to publish its weekly report on initial jobless claims, as well as revised data on third quarter GDP.
The University of Michigan was also to release revised data on consumer sentiment and inflation expectations.
EUR/USD hit 1.3073 during late Asian trade, the daily high; the pair subsequently consolidated at 1.3076, rising 0.20%.
The pair was likely to find support at 1.2956, the low of December 15 and resistance at 1.3131, the high of December 20.
The ECB’s first ever three-year loan package failed to ease concerns over the debt crisis in the euro zone as investors were uncertain whether it would increase bond purchases from indebted euro zone states, pulling down their borrowing costs.
The central bank allotted EUR489.19 billion, the largest amount ever allotted for a long-term refinancing operation, in an attempt to avoid a liquidity crunch in the single currency bloc.
But the unexpected heavy demand from 523 European lenders highlighted the severity of the region’s financial crisis and its effects on the banking industry.
Elsewhere, the euro was up against the pound with EUR/GBP adding 0.12%, to hit 0.8334.
Later in the day, the U.S. was to publish its weekly report on initial jobless claims, as well as revised data on third quarter GDP.
The University of Michigan was also to release revised data on consumer sentiment and inflation expectations.