Investing.com - The euro pushed higher against the dollar and the yen ahead of the outcome of a key European Central Bank meeting on Thursday, but gains were limited amid concerns that the bank could disappoint expectations for intervention to stem the debt crisis in the euro zone.
During European late morning trade, the euro was higher against the U.S. dollar, with EUR/USD rising 0.38% to 1.2271.
The euro found support after Spain successfully auctioned EUR3.13 billion of government bonds, the top end of the targeted range, but borrowing costs were higher while demand was weaker.
Spain’s Treasury sold EUR1.05 billion of 10-year bonds at an average yield of 6.64%, slightly up from 6.43% last month.
The euro’s gains were capped ahead of the upcoming ECB announcement, amid concerns that a less aggressive than anticipated policy response by the bank would send markets lower.
Expectations that the ECB may resume its bond buying program, to help lower Spanish and Italian borrowing costs, have been building since EBC President Mario Draghi pledged last week to do whatever it takes to preserve the euro.
The single currency strengthened against the pound, with EUR/GBP climbing 0.27% to 0.7891.
In the U.K., data showed that the construction sector unexpectedly returned to growth in July, as the Markit/CIPS construction purchasing managers’ index recovered to 50.9 from 48.2 in June, defying expectations for a decline to 48.0.
The data came one day after a report showing that manufacturing activity in the U.K. contracted at the fastest pace in more than three years in July, fuelling expectations for another round of easing by the Bank of England in the coming months.
The BoE was to conclude its monthly policy setting meeting later in the session, but few expected the bank to make any changes to interest rates or the quantitative easing program.
The euro edged higher against the yen, with EUR/JPY easing up 0.10% to 95.97 and remained unchanged against the Swiss franc, with EUR/CHF trading at 1.2016.
In Switzerland, official data showed that retail sales rose 3.7% in June, beating expectations for a 2.8% increase, while a separate report showed that the country’s SVME manufacturing index rose unexpectedly in July, but remained in contraction territory for the fourth successive month.
Elsewhere, the euro hit a record low against the New Zealand dollar, with EUR/NZD down 0.21% to 1.5104 and remained within striking distance of all-time lows against the Australian and Canadian dollars, with EUR/AUD down 0.14% to 1.1672 and EUR/CAD easing up 0.12% to 1.2308.
In Australia, official data showed that retail sales rose more-than-expected in June, advancing 1% after a 0.8% increase the previous month and beating expectations for a 0.6% rise.
A separate report showed that the country’s trade balance unexpectedly swung into a surplus of AUD0.01 billion in June.
Later Thursday, the U.S. was to release official data on initial jobless claims.
During European late morning trade, the euro was higher against the U.S. dollar, with EUR/USD rising 0.38% to 1.2271.
The euro found support after Spain successfully auctioned EUR3.13 billion of government bonds, the top end of the targeted range, but borrowing costs were higher while demand was weaker.
Spain’s Treasury sold EUR1.05 billion of 10-year bonds at an average yield of 6.64%, slightly up from 6.43% last month.
The euro’s gains were capped ahead of the upcoming ECB announcement, amid concerns that a less aggressive than anticipated policy response by the bank would send markets lower.
Expectations that the ECB may resume its bond buying program, to help lower Spanish and Italian borrowing costs, have been building since EBC President Mario Draghi pledged last week to do whatever it takes to preserve the euro.
The single currency strengthened against the pound, with EUR/GBP climbing 0.27% to 0.7891.
In the U.K., data showed that the construction sector unexpectedly returned to growth in July, as the Markit/CIPS construction purchasing managers’ index recovered to 50.9 from 48.2 in June, defying expectations for a decline to 48.0.
The data came one day after a report showing that manufacturing activity in the U.K. contracted at the fastest pace in more than three years in July, fuelling expectations for another round of easing by the Bank of England in the coming months.
The BoE was to conclude its monthly policy setting meeting later in the session, but few expected the bank to make any changes to interest rates or the quantitative easing program.
The euro edged higher against the yen, with EUR/JPY easing up 0.10% to 95.97 and remained unchanged against the Swiss franc, with EUR/CHF trading at 1.2016.
In Switzerland, official data showed that retail sales rose 3.7% in June, beating expectations for a 2.8% increase, while a separate report showed that the country’s SVME manufacturing index rose unexpectedly in July, but remained in contraction territory for the fourth successive month.
Elsewhere, the euro hit a record low against the New Zealand dollar, with EUR/NZD down 0.21% to 1.5104 and remained within striking distance of all-time lows against the Australian and Canadian dollars, with EUR/AUD down 0.14% to 1.1672 and EUR/CAD easing up 0.12% to 1.2308.
In Australia, official data showed that retail sales rose more-than-expected in June, advancing 1% after a 0.8% increase the previous month and beating expectations for a 0.6% rise.
A separate report showed that the country’s trade balance unexpectedly swung into a surplus of AUD0.01 billion in June.
Later Thursday, the U.S. was to release official data on initial jobless claims.