Investing.com - The euro was broadly lower against its major counterparts on Thursday, after Spanish borrowing costs jumped higher at a bond auction, while ongoing fears over the possibility of a Greek exit from the euro zone also weighed.
During European late morning trade, the euro was trading close to a four-month low against the U.S. dollar, with EUR/USD sliding 0.13% to hit 1.2699.
Spain successfully auctioned the full targeted amount of EUR2.5 billion at a government bond sale, but the country’s borrowing costs rose sharply, pressured higher by worries over the health of the country’s banking sector.
Meanwhile, fears over the implications of a Greek exit from the euro zone continued as the country prepared for fresh elections next month, which could see anti-austerity parties take power.
On Wednesday, the European Central Bank said it had placed some Greek banks in an emergency liquidity assistance program, as they are severely undercapitalized.
The euro rose to a session high against the greenback earlier, after Wednesday’s Federal Reserve minutes showed that several policymakers remain open to further efforts to stimulate the U.S. economy if growth falters or if the risks to the economy became great enough.
Elsewhere, the single currency pulled away from a three-and-a-half year trough against the pound, with EUR/GBP edging up 0.16% to hit 0.8004.
The pound remained broadly weaker after Wednesday’s Bank of England inflation report revised down growth forecasts and warned of the risk to the U.K. economy from the crisis in the euro zone, fuelling speculation over a fresh round of easing measures from the central bank.
The euro slipped against the yen, with EUR/JPY losing 0.11% to hit 102.03 and remained little changed against the Swiss franc, with EUR/CHF dipping 0.01% to hit 1.2010.
In Japan, official data showed that gross domestic product expanded 1.0% in the three months to March, exceeding expectations for a 0.9% increase, following a flat reading in the previous quarter.
Elsewhere, the shared currency was broadly lower against the Canadian, Australian and New Zealand dollars, with EUR/CAD inching up 0.07% to hit 1.2877, EUR/AUD slipping 0.18% to hit 1.2804 and EUR/NZD sliding 0.15% to hit 1.6610.
Later Thursday, the U.S. was to produce government data on unemployment claims, as well as a report on manufacturing activity in the Philadelphia area.
During European late morning trade, the euro was trading close to a four-month low against the U.S. dollar, with EUR/USD sliding 0.13% to hit 1.2699.
Spain successfully auctioned the full targeted amount of EUR2.5 billion at a government bond sale, but the country’s borrowing costs rose sharply, pressured higher by worries over the health of the country’s banking sector.
Meanwhile, fears over the implications of a Greek exit from the euro zone continued as the country prepared for fresh elections next month, which could see anti-austerity parties take power.
On Wednesday, the European Central Bank said it had placed some Greek banks in an emergency liquidity assistance program, as they are severely undercapitalized.
The euro rose to a session high against the greenback earlier, after Wednesday’s Federal Reserve minutes showed that several policymakers remain open to further efforts to stimulate the U.S. economy if growth falters or if the risks to the economy became great enough.
Elsewhere, the single currency pulled away from a three-and-a-half year trough against the pound, with EUR/GBP edging up 0.16% to hit 0.8004.
The pound remained broadly weaker after Wednesday’s Bank of England inflation report revised down growth forecasts and warned of the risk to the U.K. economy from the crisis in the euro zone, fuelling speculation over a fresh round of easing measures from the central bank.
The euro slipped against the yen, with EUR/JPY losing 0.11% to hit 102.03 and remained little changed against the Swiss franc, with EUR/CHF dipping 0.01% to hit 1.2010.
In Japan, official data showed that gross domestic product expanded 1.0% in the three months to March, exceeding expectations for a 0.9% increase, following a flat reading in the previous quarter.
Elsewhere, the shared currency was broadly lower against the Canadian, Australian and New Zealand dollars, with EUR/CAD inching up 0.07% to hit 1.2877, EUR/AUD slipping 0.18% to hit 1.2804 and EUR/NZD sliding 0.15% to hit 1.6610.
Later Thursday, the U.S. was to produce government data on unemployment claims, as well as a report on manufacturing activity in the Philadelphia area.