Investing.com - The euro pulled back from session lows against the U.S. dollar and the yen on Thursday, amid speculation that pro-bailout parties are likely to win this weekend’s closely watched elections in Greece.
During European late morning trade, the euro rebounded from a session low against the U.S. dollar, with EUR/USD up 0.21% to trade at 1.2583.
The euro found support following media reports that a pro-bailout government is likely to be formed in Greece, following this Sunday’s general elections, despite opinion polls being banned in Greece for two weeks ahead of elections.
The euro briefly touched a session low against the greenback earlier after the yield on Spanish 10-year bonds broke through the critical 7% threshold, a level seen as unsustainable in the long run, one day after a three-notch downgrade of the country’s sovereign rating by Moody’s.
Meanwhile, Italy’s Treasury successfully sold the maximum targeted amount of EUR4.5 billion of government bonds on Thursday, but the country’s three-year borrowing costs jumped to the highest level since December, amid concerns over sovereign debt contagion.
The single currency erased losses against the yen, with EUR/JPY inching up 0.01% to trade at 99.81, coming off a session low of 99.49.
The euro was little changed against the pound and the Swiss franc, with EUR/GBP dipping 0.01% to hit 0.8097 and EUR/CHF inching down 0.01% to hit 1.2008.
The Swiss National Bank held its benchmark interest rate at 0.0% following its policy meeting earlier and reiterated that it was prepared to buy foreign currency in unlimited quantities in order to enforce the 1.20 minimum exchange rate imposed on the euro in September.
The euro was broadly lower against the Canadian, Australian and New Zealand dollars, with EUR/CAD slipping 0.22% to hit 1.2906, EUR/AUD dipping 0.08% to hit 1.2629 and EUR/NZD falling 0.50% to hit 1.6154.
Earlier Thursday, the Reserve Bank of New Zealand maintained its benchmark interest rate at 2.50%, citing a deteriorating global economic outlook.
Later in the day, the U.S. was to release official data on consumer price inflation and initial jobless claims.
During European late morning trade, the euro rebounded from a session low against the U.S. dollar, with EUR/USD up 0.21% to trade at 1.2583.
The euro found support following media reports that a pro-bailout government is likely to be formed in Greece, following this Sunday’s general elections, despite opinion polls being banned in Greece for two weeks ahead of elections.
The euro briefly touched a session low against the greenback earlier after the yield on Spanish 10-year bonds broke through the critical 7% threshold, a level seen as unsustainable in the long run, one day after a three-notch downgrade of the country’s sovereign rating by Moody’s.
Meanwhile, Italy’s Treasury successfully sold the maximum targeted amount of EUR4.5 billion of government bonds on Thursday, but the country’s three-year borrowing costs jumped to the highest level since December, amid concerns over sovereign debt contagion.
The single currency erased losses against the yen, with EUR/JPY inching up 0.01% to trade at 99.81, coming off a session low of 99.49.
The euro was little changed against the pound and the Swiss franc, with EUR/GBP dipping 0.01% to hit 0.8097 and EUR/CHF inching down 0.01% to hit 1.2008.
The Swiss National Bank held its benchmark interest rate at 0.0% following its policy meeting earlier and reiterated that it was prepared to buy foreign currency in unlimited quantities in order to enforce the 1.20 minimum exchange rate imposed on the euro in September.
The euro was broadly lower against the Canadian, Australian and New Zealand dollars, with EUR/CAD slipping 0.22% to hit 1.2906, EUR/AUD dipping 0.08% to hit 1.2629 and EUR/NZD falling 0.50% to hit 1.6154.
Earlier Thursday, the Reserve Bank of New Zealand maintained its benchmark interest rate at 2.50%, citing a deteriorating global economic outlook.
Later in the day, the U.S. was to release official data on consumer price inflation and initial jobless claims.