Investing.com - The euro clawed back from a 16-month trough against the U.S. dollar on Monday, but the single currency remained vulnerable as concerns over the sovereign debt crisis in the region intensified.
EUR/USD clawed back from 1.2667, the pair’s lowest since September 10, 2010, to hit 1.2769 during European early afternoon trade, gaining 0.39%.
The pair was likely to find support at 1.2667, the session low and short-term resistance at 1.2812, Friday’s high.
The euro found support ahead of a meeting between German Chancellor Angela Merkel and French President Nicolas Sarkozy later in the day, to discuss proposals to tighten coordination of fiscal policy in the single currency bloc.
Sentiment on the single currency was also buoyed after official data showed that German exports jumped 2.5% in November; unexpectedly increasing the trade surplus and easing concerns over a slowdown in Europe’s largest economy.
But a separate report showed that German industrial production fell more-than-expected in November, dropping for the third time in the last four months.
Meanwhile, concerns over the ability of troubled euro zone nations to fulfill their sovereign funding needs continued to weigh, ahead of government debt auctions by Spain and Italy later in the week.
The yield on 10-year Italian government bonds climbed to 7.13%, above the 7% threshold seen as unsustainable, while the yield on Spanish 10-year bonds was at 5.71%.
The euro also eased higher against the pound and the yen, with EUR/GBP rising 0.27% to hit 0.8268 and EUR/JPY adding 0.21% to hit 98.07.
Also Monday, a report showed that investor confidence in the euro zone improved more-than-expected this month, but remained in negative territory for the sixth consecutive month.
EUR/USD clawed back from 1.2667, the pair’s lowest since September 10, 2010, to hit 1.2769 during European early afternoon trade, gaining 0.39%.
The pair was likely to find support at 1.2667, the session low and short-term resistance at 1.2812, Friday’s high.
The euro found support ahead of a meeting between German Chancellor Angela Merkel and French President Nicolas Sarkozy later in the day, to discuss proposals to tighten coordination of fiscal policy in the single currency bloc.
Sentiment on the single currency was also buoyed after official data showed that German exports jumped 2.5% in November; unexpectedly increasing the trade surplus and easing concerns over a slowdown in Europe’s largest economy.
But a separate report showed that German industrial production fell more-than-expected in November, dropping for the third time in the last four months.
Meanwhile, concerns over the ability of troubled euro zone nations to fulfill their sovereign funding needs continued to weigh, ahead of government debt auctions by Spain and Italy later in the week.
The yield on 10-year Italian government bonds climbed to 7.13%, above the 7% threshold seen as unsustainable, while the yield on Spanish 10-year bonds was at 5.71%.
The euro also eased higher against the pound and the yen, with EUR/GBP rising 0.27% to hit 0.8268 and EUR/JPY adding 0.21% to hit 98.07.
Also Monday, a report showed that investor confidence in the euro zone improved more-than-expected this month, but remained in negative territory for the sixth consecutive month.