Investing.com - The euro dipped against the U.S. dollar on Thursday, giving up some of the previous day’s gains amid lingering worries that Spain may require a full-scale sovereign bailout and Greece may exit the euro zone.
EUR/USD hit 1.2128 during late Asian trade, the session low; the pair subsequently consolidated at 1.2153, dipping 0.03%.
The pair was likely to find support at 1.2052, Wednesday’s low and an almost two-year low and resistance at 1.2282, the high of July 20.
The euro strengthened broadly on Wednesday after European Central Bank Governing Council member Ewald Nowotny said there was an argument for giving the European Stability Mechanism a banking license, which would increase its firepower to fight the debt crisis in the euro zone.
But the euro came under renewed pressure after ECB President Mario Draghi appeared to reject the idea.
The yield on Spanish 10-year bonds was at 7.38% on Thursday, below Wednesday’s euro-era high of 7.74%, but still above the critical 7% threshold, widely considered unsustainable in the long term.
Meanwhile, the dollar’s gains were limited amid renewed speculation over the possibility of more easing from the Federal Reserve, ahead of its policy meeting next week.
The euro edged higher against the pound and the yen, with EUR/GBP easing up 0.09% to 0.7850 and EUR/JPY inching up 0.04% to 95.05.
Later in the day, the U.S. was to release official data on durable goods orders and initial jobless claims, as well as industry data on pending home sales.
EUR/USD hit 1.2128 during late Asian trade, the session low; the pair subsequently consolidated at 1.2153, dipping 0.03%.
The pair was likely to find support at 1.2052, Wednesday’s low and an almost two-year low and resistance at 1.2282, the high of July 20.
The euro strengthened broadly on Wednesday after European Central Bank Governing Council member Ewald Nowotny said there was an argument for giving the European Stability Mechanism a banking license, which would increase its firepower to fight the debt crisis in the euro zone.
But the euro came under renewed pressure after ECB President Mario Draghi appeared to reject the idea.
The yield on Spanish 10-year bonds was at 7.38% on Thursday, below Wednesday’s euro-era high of 7.74%, but still above the critical 7% threshold, widely considered unsustainable in the long term.
Meanwhile, the dollar’s gains were limited amid renewed speculation over the possibility of more easing from the Federal Reserve, ahead of its policy meeting next week.
The euro edged higher against the pound and the yen, with EUR/GBP easing up 0.09% to 0.7850 and EUR/JPY inching up 0.04% to 95.05.
Later in the day, the U.S. was to release official data on durable goods orders and initial jobless claims, as well as industry data on pending home sales.