Investing.com - The euro slipped lower against most of its global counterparts on Thursday, as the results of a closely watched Spanish debt auction failed to ease investor concerns over the outlook for the country’s fiscal position.
During European late morning trade, the euro gave up gains against the U.S. dollar, with EUR/USD dipping 0.06% to hit 1.3113, off a session high of 1.3166.
Sentiment on the euro remained fragile after Spain raised slightly more than the full targeted amount of EUR2.5 billion, while the yield on the country’s 10-year bonds remained below the 6% level.
Spain auctioned EUR1.11 billion of two-year bonds at an average yield of 3.46%, up from 2.06% at a similar auction last month and EUR1.42 billion of 10-year bonds at an average yield of 5.74%, up from 5.33% from a similar auction in March.
The results failed to ease concerns over the outlook for Spain, as Prime Minister Mariano Rajoy's government attempts to reduce one of the largest deficits in the euro zone, amid fears that the economy is entering a recession.
The single currency was hovering close to a 19-month low against sterling, with EUR/GBP slipping 0.14% to hit 0.8178.
The pound remained supported by diminished expectations for additional monetary stimulus measures from the Bank of England, after Wednesday’s minutes of the bank’s April meeting showed that just one policymaker voted in favor of additional easing.
In March, two of the nine member monetary policy committee favored additional stimulus measures.
Strong U.K. employment data on Wednesday also fuelled hopes that the economic recovery is gaining momentum.
But the euro was higher against the yen, with EUR/JPY climbing 0.47% to hit 107.12.
The yen was pressured lower by ongoing expectations for further easing measures by the Bank of Japan, after the central bank's governor reaffirmed a commitment to monetary easing in order to meet Japan’s targeted rate of inflation.
Meanwhile, official data showed that Japan’s trade deficit widened more-than-expected in March, climbing to JPY0.62 trillion from a deficit of JPY0.32 trillion the previous month.
Analysts had expected the trade deficit to widen to JPY0.44 trillion last month.
The euro was little changed against the Swiss franc, with EUR/CHF inching down 0.02% to hit 1.2016.
The shared currency was weaker against the Canadian, Australian and New Zealand dollars, with EUR/CAD shedding 0.24% to hit 1.2977, EUR/AUD slipping 0.11% to hit 1.2657 and EUR/NZD falling 0.30% to hit 1.6031.
In New Zealand, official data showed that consumer price inflation 0.5% in the first quarter, after a 0.3% decline the previous quarter, slightly less than expectations for a 0.6% increase.
Later Thursday, the U.S. was to release official data on unemployment claims, followed by industry data on existing home sales and a report on manufacturing activity in the Philadelphia area.
During European late morning trade, the euro gave up gains against the U.S. dollar, with EUR/USD dipping 0.06% to hit 1.3113, off a session high of 1.3166.
Sentiment on the euro remained fragile after Spain raised slightly more than the full targeted amount of EUR2.5 billion, while the yield on the country’s 10-year bonds remained below the 6% level.
Spain auctioned EUR1.11 billion of two-year bonds at an average yield of 3.46%, up from 2.06% at a similar auction last month and EUR1.42 billion of 10-year bonds at an average yield of 5.74%, up from 5.33% from a similar auction in March.
The results failed to ease concerns over the outlook for Spain, as Prime Minister Mariano Rajoy's government attempts to reduce one of the largest deficits in the euro zone, amid fears that the economy is entering a recession.
The single currency was hovering close to a 19-month low against sterling, with EUR/GBP slipping 0.14% to hit 0.8178.
The pound remained supported by diminished expectations for additional monetary stimulus measures from the Bank of England, after Wednesday’s minutes of the bank’s April meeting showed that just one policymaker voted in favor of additional easing.
In March, two of the nine member monetary policy committee favored additional stimulus measures.
Strong U.K. employment data on Wednesday also fuelled hopes that the economic recovery is gaining momentum.
But the euro was higher against the yen, with EUR/JPY climbing 0.47% to hit 107.12.
The yen was pressured lower by ongoing expectations for further easing measures by the Bank of Japan, after the central bank's governor reaffirmed a commitment to monetary easing in order to meet Japan’s targeted rate of inflation.
Meanwhile, official data showed that Japan’s trade deficit widened more-than-expected in March, climbing to JPY0.62 trillion from a deficit of JPY0.32 trillion the previous month.
Analysts had expected the trade deficit to widen to JPY0.44 trillion last month.
The euro was little changed against the Swiss franc, with EUR/CHF inching down 0.02% to hit 1.2016.
The shared currency was weaker against the Canadian, Australian and New Zealand dollars, with EUR/CAD shedding 0.24% to hit 1.2977, EUR/AUD slipping 0.11% to hit 1.2657 and EUR/NZD falling 0.30% to hit 1.6031.
In New Zealand, official data showed that consumer price inflation 0.5% in the first quarter, after a 0.3% decline the previous quarter, slightly less than expectations for a 0.6% increase.
Later Thursday, the U.S. was to release official data on unemployment claims, followed by industry data on existing home sales and a report on manufacturing activity in the Philadelphia area.