Euro pushes higher in thin trade after Italian bond auction

Published 08/13/2012, 07:34 AM
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Investing.com - The euro pushed higher against all of the other major currencies in thin trade on Monday, after an auction of Italian government debt met with solid investor demand.

During European afternoon trade, the euro was higher against the U.S. dollar, with EUR/USD rising 0.50% to 1.2350.

Italy saw borrowing costs rise only slightly after it auctioned the full targeted amount of EUR8 billion of 12-month government bonds at an average yield of 1.69%, up from 1.55% previously.

Elsewhere, official data showed that Greece’s economy contracted less-than-expected in the second quarter.

Greek gross domestic product contracted by 6.2% in the three months to June, less than the 7.0% contraction forecast by economists and slightly less than the 6.5% contraction seen in the first quarter.

The single currency was also higher against the pound, with EUR/GBP climbing 0.43% to 0.7867.

Sterling came under pressure amid fears that weak economic data this week could prompt the Bank of England to implement more easing measures to spur growth.

The euro was higher against the yen, with EUR/JPY up 0.56% to 96.68.

Earlier in the day, official data showed that Japan’s economy grew just 0.3% in the three months to June, half as much as expectations for a 0.6% expansion, from an upwardly revised 1.2% in the first quarter, as export demand was hit by the debt crisis in the euro zone.

The euro was little changed against the Swiss franc, with EUR/CHF inching up 0.02% to 1.2010.

The shared currency also gained ground against the Australian, Canadian and New Zealand dollars, with EUR/AUD advancing 0.61% to 1.1687, EUR/CAD up 0.54% to trade at 1.2240 and EUR/NZD climbing 0.66% to hit 1.5196.

Trade looked likely to remain subdued on Monday, with no significant economic data releases on the calendar, while volumes were light with many market participants on summer holidays.



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