Investing.com - The euro was mixed against its major counterparts on Thursday, as the single currency found some support after Italy saw borrowing costs fall to a two-month low at an auction of short-term government debt earlier.
But gains were limited amid ongoing concerns over the handling of the region’s sovereign debt crisis.
During European late morning trade, the euro was lower against the U.S. dollar, with EUR/USD shedding 0.21% to hit 1.2215.
The euro found mild support after Italy’s Treasury sold the full targeted amount of EUR7.5 billion worth of 12-month government bonds at an average yield of 2.697%, the lowest since May and down sharply from 3.972% at a similar auction last month.
Meanwhile, official data showed that industrial production in the euro zone rose for the first time in three months in May, increasing by 0.6%. Analysts had expected a modest 0.1% decline.
But sentiment on the euro remained fragile after the European Central Bank’s monthly bulletin reiterated that downside risks have materialized and that growth in the region will remain weak.
Traders also remained jittery after Spanish Prime Minister Mariano Rajoy announced on Wednesday EUR65 billion of new austerity measures, in an effort to meet new budget-deficit targets agreed with euro zone partners.
Market analysts warned that the fresh austerity measures were likely to drag Spain’s economy deeper in to a recession.
Meanwhile, the euro was little changed against the pound, with EUR/GBP easing up 0.03% to trade at 0.7898.
Sterling found support after the U.K. saw borrowing costs fall to a record low at an auction of 10-year government bonds, as investors piled in to safe haven assets amid growing fears over the global economic outlook.
The single currency was lower against the yen and little changed against the Swiss franc, with EUR/JPY falling 0.76% to trade at 97.89 and EUR/CHF trading at 1.2010.
The yen was boosted after the Bank of Japan refrained from implementing further easing measures, though it did slightly tweak is asset-buying and lending program following its two-day policy setting meeting.
Elsewhere, the euro was mostly higher against the Canadian, Australian and New Zealand dollars, with EUR/CAD gaining 0.01% to hit 1.2491, EUR/AUD up 0.9% to hit 1.2048 and EUR/NZD adding 0.89% to 1.5499.
The Aussie came under pressure after official data showed that Australia’s economy shed 27,000 jobs in June, disappointing expectations for a 200 increase and following a 27,800 rise the previous month.
Australia’s unemployment rate rose to 5.2% in June from 5.1% the previous month, in line with expectations.
Later in the day, the U.S. was to release government data on unemployment claims and official data on import prices.
Market players were also looking ahead to Chinese second quarter growth figures due out on Friday, to gauge whether China is a heading towards a hard or a soft landing.
A deeper slowdown in China would impair a global expansion that is already faltering because of the ongoing debt crisis in the euro zone.
But gains were limited amid ongoing concerns over the handling of the region’s sovereign debt crisis.
During European late morning trade, the euro was lower against the U.S. dollar, with EUR/USD shedding 0.21% to hit 1.2215.
The euro found mild support after Italy’s Treasury sold the full targeted amount of EUR7.5 billion worth of 12-month government bonds at an average yield of 2.697%, the lowest since May and down sharply from 3.972% at a similar auction last month.
Meanwhile, official data showed that industrial production in the euro zone rose for the first time in three months in May, increasing by 0.6%. Analysts had expected a modest 0.1% decline.
But sentiment on the euro remained fragile after the European Central Bank’s monthly bulletin reiterated that downside risks have materialized and that growth in the region will remain weak.
Traders also remained jittery after Spanish Prime Minister Mariano Rajoy announced on Wednesday EUR65 billion of new austerity measures, in an effort to meet new budget-deficit targets agreed with euro zone partners.
Market analysts warned that the fresh austerity measures were likely to drag Spain’s economy deeper in to a recession.
Meanwhile, the euro was little changed against the pound, with EUR/GBP easing up 0.03% to trade at 0.7898.
Sterling found support after the U.K. saw borrowing costs fall to a record low at an auction of 10-year government bonds, as investors piled in to safe haven assets amid growing fears over the global economic outlook.
The single currency was lower against the yen and little changed against the Swiss franc, with EUR/JPY falling 0.76% to trade at 97.89 and EUR/CHF trading at 1.2010.
The yen was boosted after the Bank of Japan refrained from implementing further easing measures, though it did slightly tweak is asset-buying and lending program following its two-day policy setting meeting.
Elsewhere, the euro was mostly higher against the Canadian, Australian and New Zealand dollars, with EUR/CAD gaining 0.01% to hit 1.2491, EUR/AUD up 0.9% to hit 1.2048 and EUR/NZD adding 0.89% to 1.5499.
The Aussie came under pressure after official data showed that Australia’s economy shed 27,000 jobs in June, disappointing expectations for a 200 increase and following a 27,800 rise the previous month.
Australia’s unemployment rate rose to 5.2% in June from 5.1% the previous month, in line with expectations.
Later in the day, the U.S. was to release government data on unemployment claims and official data on import prices.
Market players were also looking ahead to Chinese second quarter growth figures due out on Friday, to gauge whether China is a heading towards a hard or a soft landing.
A deeper slowdown in China would impair a global expansion that is already faltering because of the ongoing debt crisis in the euro zone.