Investing.com - The euro was broadly lower against the other major currencies on Tuesday, as Spain's rising borrowing costs and concerns over the handling of the country's debt woes overshadowed positive economic data from Germany and the euro zone.
During European early afternoon trade, the euro dropped against the U.S. dollar, with EUR/USD declining 0.45% to 1.3057.
The ZEW Centre for Economic Research said that its index of economic sentiment for Germany improved more-than-expected in September, ticking up to minus 18.2 from a reading of minus 25.5 the previous month. Analysts had expected the index to improve to minus 19 in September.
The ZEW index of economic sentiment in the euro zone improved to minus 3.8 in September from minus 21.2 the previous month, beating expectations for a reading of minus 16.5.
But the single currency remained under pressure after Reuters reported earlier that Spanish Prime Minister Mariano Rajoy remains uncertain about asking for help from the European Central Bank's new bond-purchasing program, which would mean signing up to a permanent bailout fund.
Also Tuesday, Madrid sold EUR3.56 billion worth of 12-month government bonds, at an average yield of 2.83%, down from 3.07% at a previous auction. The Spanish Treasury also sold EUR1.02 billion worth of 18-month bonds, at a yield of 3.07%, down from 3.33%.
Following the auctions, the yield of Spanish 10-year government bonds was at 5.90%, close to the 6% threshold, widely seen as unsustainable in the long term.
The single currency was also lower gainst the pound, with EUR/GBP shedding 0.37% to 0.8042.
Official data showed earlier that consumer price inflation in the U.K. ticked down to an annualized rate of 2.5% in August, from 2.6% the previous month, in line with expectations.
The euro was lower against the yen and the Swiss franc, with EUR/JPY retreating 0.63% to 102.59, and EUR/CHF slipping 0.43% to 1.2111.
The Swiss State Secretariat for Economic Affairs downgraded its economic outlook to a 1% expansion this year, down from the prior estimate of 1.4%, citing weak global conditions, adding that it does not foresee a marked recession in Switzerland thanks to the robust domestic economy and the floor currency exchange rate.
The shared currency was mixed against the Australian, New Zealand and Canadian dollars, with EUR/AUD adding 0.14% to 1.2536, EUR/NZD falling 0.33% to 1.5824 and EUR/CAD declining 0.30% to trade at 1.2747.
In the minutes of its September policy meeting, the Reserve Bank of Australia said that previous rate cuts have been effective but signaled that further easing would be implemented if the economic conditions worsen.
Later in the day, the U.S. was to release official data on the current account, as well as a report on the balance of domestic and foreign investment in long-term securities.
During European early afternoon trade, the euro dropped against the U.S. dollar, with EUR/USD declining 0.45% to 1.3057.
The ZEW Centre for Economic Research said that its index of economic sentiment for Germany improved more-than-expected in September, ticking up to minus 18.2 from a reading of minus 25.5 the previous month. Analysts had expected the index to improve to minus 19 in September.
The ZEW index of economic sentiment in the euro zone improved to minus 3.8 in September from minus 21.2 the previous month, beating expectations for a reading of minus 16.5.
But the single currency remained under pressure after Reuters reported earlier that Spanish Prime Minister Mariano Rajoy remains uncertain about asking for help from the European Central Bank's new bond-purchasing program, which would mean signing up to a permanent bailout fund.
Also Tuesday, Madrid sold EUR3.56 billion worth of 12-month government bonds, at an average yield of 2.83%, down from 3.07% at a previous auction. The Spanish Treasury also sold EUR1.02 billion worth of 18-month bonds, at a yield of 3.07%, down from 3.33%.
Following the auctions, the yield of Spanish 10-year government bonds was at 5.90%, close to the 6% threshold, widely seen as unsustainable in the long term.
The single currency was also lower gainst the pound, with EUR/GBP shedding 0.37% to 0.8042.
Official data showed earlier that consumer price inflation in the U.K. ticked down to an annualized rate of 2.5% in August, from 2.6% the previous month, in line with expectations.
The euro was lower against the yen and the Swiss franc, with EUR/JPY retreating 0.63% to 102.59, and EUR/CHF slipping 0.43% to 1.2111.
The Swiss State Secretariat for Economic Affairs downgraded its economic outlook to a 1% expansion this year, down from the prior estimate of 1.4%, citing weak global conditions, adding that it does not foresee a marked recession in Switzerland thanks to the robust domestic economy and the floor currency exchange rate.
The shared currency was mixed against the Australian, New Zealand and Canadian dollars, with EUR/AUD adding 0.14% to 1.2536, EUR/NZD falling 0.33% to 1.5824 and EUR/CAD declining 0.30% to trade at 1.2747.
In the minutes of its September policy meeting, the Reserve Bank of Australia said that previous rate cuts have been effective but signaled that further easing would be implemented if the economic conditions worsen.
Later in the day, the U.S. was to release official data on the current account, as well as a report on the balance of domestic and foreign investment in long-term securities.