* Euro edges up vs dollar, hits 1-mth high vs CHF
* Support seen from speculation of euro zone debt measures
* EUR/USD briefly hits day's high after strong Spain auction
(Adds comment, details, updates prices)
By Naomi Tajitsu
LONDON, Jan 13 (Reuters) - The euro hit a one-month high against the Swiss franc and edged up versus the dollar on Thursday as speculation that measures to tame the euro zone debt crisis may be on their way prompted short covering.
The euro briefly nudged up to the day's high versus the dollar after strong demand at a Spanish government bond auction cooled speculation that debt problems plaguing Greece, Ireland and Portugal will spread to Madrid and beyond.
Traders said jitters before an upcoming emergency meeting of Swiss unions and industry representatives triggered selling in the Swiss franc against the euro, pushing the euro to 1.2837 francs, its highest since mid-December.
The euro was supported after German Finance Minister Wolfgang Schaeuble said on Wednesday that euro zone countries are working on a "comprehensive package", which may be agreed by February or March, to solve the bloc's debt crisis.
Strong demand at the Spanish auction, which came on the heels of a solid sale of Portuguese debt on Wednesday, also bolstered the euro, but some analysts said gains may be limited.
"Both the Portuguese and the Spanish auctions were concerns at the beginning of the week and both seem to have gone off reasonably well," said Raghav Subbarao, currency strategist at Barclays Capital.
"But in the medium term there are still concerns about the policy and political perspective regarding how their debt situations will be resolved, and I don't think anything has changed because of these auctions."
He argued that Portugal's snowballing debt financing costs will ultimately force the country into asking for an EU/IMF bailout, while Spain faces a hefty rollover of existing debt in April. Still, a bailout for Madrid was unlikely, Subbarao added. The euro was flat on the day at $1.3150, after edging up to a session high of $1.3171 after the Spanish auction results. It recovered from an early slide to $1.3089.
Hovering around $1.3152, the 50 percent retracement of the recent fall from around $1.3435 to $1.2870, the single currency was also supported by its 200-day moving average of $1.3070 after it rose as high as $1.3145 on Wednesday.
The euro has recovered from a fall to around $1.2860 on Monday, its weakest since mid-September.
EURO SUPPORT?
Analysts said the euro may see some support on speculation that a concrete solution to the debt crisis may come soon.
"We're wary of positioning for euro downside too aggressively because there seems to be more news that Germany and France are going to push through some emergency resolution package," said Geoffrey Yu, currency strategist at UBS.
Still, others argue the euro remains vulnerable to selling if euro zone debt problems deteriorate further.
The European Central Bank announces its monthly policy decision later in the day, and President Jean-Claude Trichet will speak to reporters at 1330 GMT.
While no policy changes are expected, markets will focus on the central bank's bond-buying programme and its reaction to higher inflation.
Support for the euro kept the dollar weak. The dollar index, which tracks the greenback's performance against a basket of major currencies, was a touch lower on the day at 79.98 after having lost about 1 percent this week.
The dollar moved sideways against the yen at 82.98 yen, holding within the previous session's trading range.
The Aussie was slightly higher at $0.9966, with strong commodity prices helping to shake off losses suffered after a surprisingly small rise in employment data.
(Editing by Ruth Pitchford)