Investing.com – The euro erased gains against the U.S. dollar on Wednesday, falling to a fresh daily low, after the premium investors demanded to hold Portuguese government bonds fell for the nine year issue but rose for the three year issue.
EUR/USD retreated from 1.3045, the pair’s highest since January 6; to hit 1.2969 during European late morning trade, dipping 0.03%.
The pair was likely to find support at 1.2872, Monday’s low and a four month low and resistance at 1.3169, the high of January 6.
Earlier in the day, Portugal sold the maximum amount of EUR1.25 billion bonds at auction.
The government debt agency said it sold EUR650 million in three year bonds and EUR599 million in nine year bonds. The average yield on the shorter-term loan was 5.4%, up from 4% in the last sale, while the yield on longer bonds was 6.7%, down slightly from 6.8% at the last auction.
The agency said high demand meant Portugal could have sold more than double the amount offered.
The euro was also lower against the pound, with EUR/GBP slipping 0.02% to hit 0.8316.
Also Wednesday, the European Union Monetary Affairs Commissioner Olli Rehn writing in the Financial Times said EU officials were trying to forge a “comprehensive” plan to contain the sovereign debt crisis.
Rehn said that the lending capacity of the EU’s main bailout fund, the EUR440 billion European Financial Stability Facility, “should be reinforced and the scope of its activity widened.”
EUR/USD retreated from 1.3045, the pair’s highest since January 6; to hit 1.2969 during European late morning trade, dipping 0.03%.
The pair was likely to find support at 1.2872, Monday’s low and a four month low and resistance at 1.3169, the high of January 6.
Earlier in the day, Portugal sold the maximum amount of EUR1.25 billion bonds at auction.
The government debt agency said it sold EUR650 million in three year bonds and EUR599 million in nine year bonds. The average yield on the shorter-term loan was 5.4%, up from 4% in the last sale, while the yield on longer bonds was 6.7%, down slightly from 6.8% at the last auction.
The agency said high demand meant Portugal could have sold more than double the amount offered.
The euro was also lower against the pound, with EUR/GBP slipping 0.02% to hit 0.8316.
Also Wednesday, the European Union Monetary Affairs Commissioner Olli Rehn writing in the Financial Times said EU officials were trying to forge a “comprehensive” plan to contain the sovereign debt crisis.
Rehn said that the lending capacity of the EU’s main bailout fund, the EUR440 billion European Financial Stability Facility, “should be reinforced and the scope of its activity widened.”