Investing.com - The euro edged higher against the U.S. dollar on Thursday on the back of upbeat corporate earnings, but remained weaker against the other major currencies as a poorly received Spanish debt auction fuelled fears that country will require a full bailout.
During European late morning trade, the euro pushed higher against the U.S. dollar, with EUR/USD rising 0.15% to 1.2302.
The single currency found support as investor sentiment was buoyed by robust corporate earnings, which lifted global equities markets.
Investors were looking ahead to a German vote on approving the country’s part in an aid package for Spanish banks later in the day.
Earlier Thursday, Spain saw demand weaken and borrowing costs rise sharply at an auction of two, five and seven-year government bonds, fuelling fears that the country could be locked out of international credit markets.
Spain’s Treasury auctioned EUR2.9 billion of two, five and seven-year government bonds, but the yield on the country’s five-year bonds climbed to 6.45% from 6.07% at a similar auction last month, while the yield on the seven year bond jumped to 6.79% from 4.89% in February.
Following the auction the yield on the country’s 10-year bonds was at 7.02%, breaching the critical 7% threshold, widely viewed as unsustainable in the long run.
The euro was hovering close to a three-and-a-half year low against the pound, with EUR/GBP inching up 0.02% to 0.7847 and slipped lower against the yen, with EUR/JPY losing 0.10% to trade at 96.69.
In the U.K., official data showed that retail rose less-than-expected in June, inching up 0.1%, below expectations for a 0.6% gain, as wet weather hurt demand for outdoor products.
The euro was little changed against the Swiss franc, with EUR/CHF dipping 0.01% to 1.2010.
The euro hit record lows against the Australian and New Zealand dollars, with EUR/AUD down 0.39% to 1.1803 and EUR/NZD shedding 0.36% to hit 1.5288. In addition, the shared currency remained within striking distance of a record low against the Canadian dollar, with EUR/CAD slipping 0.08% to 1.2401.
Later Thursday, the U.S. was to publish government data on initial jobless claims, as well as reports on existing home sales and manufacturing activity in Philadelphia.
In a second day of testimony on the economy and monetary policy on Wednesday, Federal Reserve Chairman Ben Bernanke reiterated that the U.S. central bank was prepared to take further action to support the economic recovery if necessary, without indicating whether the Fed will embark on a third round of quantitative easing.
During European late morning trade, the euro pushed higher against the U.S. dollar, with EUR/USD rising 0.15% to 1.2302.
The single currency found support as investor sentiment was buoyed by robust corporate earnings, which lifted global equities markets.
Investors were looking ahead to a German vote on approving the country’s part in an aid package for Spanish banks later in the day.
Earlier Thursday, Spain saw demand weaken and borrowing costs rise sharply at an auction of two, five and seven-year government bonds, fuelling fears that the country could be locked out of international credit markets.
Spain’s Treasury auctioned EUR2.9 billion of two, five and seven-year government bonds, but the yield on the country’s five-year bonds climbed to 6.45% from 6.07% at a similar auction last month, while the yield on the seven year bond jumped to 6.79% from 4.89% in February.
Following the auction the yield on the country’s 10-year bonds was at 7.02%, breaching the critical 7% threshold, widely viewed as unsustainable in the long run.
The euro was hovering close to a three-and-a-half year low against the pound, with EUR/GBP inching up 0.02% to 0.7847 and slipped lower against the yen, with EUR/JPY losing 0.10% to trade at 96.69.
In the U.K., official data showed that retail rose less-than-expected in June, inching up 0.1%, below expectations for a 0.6% gain, as wet weather hurt demand for outdoor products.
The euro was little changed against the Swiss franc, with EUR/CHF dipping 0.01% to 1.2010.
The euro hit record lows against the Australian and New Zealand dollars, with EUR/AUD down 0.39% to 1.1803 and EUR/NZD shedding 0.36% to hit 1.5288. In addition, the shared currency remained within striking distance of a record low against the Canadian dollar, with EUR/CAD slipping 0.08% to 1.2401.
Later Thursday, the U.S. was to publish government data on initial jobless claims, as well as reports on existing home sales and manufacturing activity in Philadelphia.
In a second day of testimony on the economy and monetary policy on Wednesday, Federal Reserve Chairman Ben Bernanke reiterated that the U.S. central bank was prepared to take further action to support the economic recovery if necessary, without indicating whether the Fed will embark on a third round of quantitative easing.