Investing.com – The euro dropped against the U.S. dollar Wednesday, snapping key psychological support at 1.3000 as debt fears continue in the euro zone.
EUR/USD hit a low of 1.2912 during mid session U.S. trade. The pair is off a high of 1.3080 and is currently trading at 1.2934 down 1.04%.
The pair was likely to find support at 1.2905 and technical resistance exists at 1.2956.
Light Christmas and New Years holiday volume added to the volatility as traders relaxed in preparation for 2012
Italy's Treasury short term bond auction was a bright spot but the optimism faded quickly as concern over Thursday's long term auction results escalated.
Adding to the euro negative sentiment, the use of the European Central Bank's overnight deposit facility reached an all time high of EUR452.03 billion on Tuesday. This added to fears that the ECB's crisis lending programs have not helped the banking sector.
Meanwhile, the euro fell to a 10 year low against the yen on the ECB's growing balance sheet.
The Euro advanced against the pound with EUR/GBP gaining 0.28% to 0.8363.
Investors are awaiting the Italian bond auction and jobless claims from the U.S. on Thursday.
EUR/USD hit a low of 1.2912 during mid session U.S. trade. The pair is off a high of 1.3080 and is currently trading at 1.2934 down 1.04%.
The pair was likely to find support at 1.2905 and technical resistance exists at 1.2956.
Light Christmas and New Years holiday volume added to the volatility as traders relaxed in preparation for 2012
Italy's Treasury short term bond auction was a bright spot but the optimism faded quickly as concern over Thursday's long term auction results escalated.
Adding to the euro negative sentiment, the use of the European Central Bank's overnight deposit facility reached an all time high of EUR452.03 billion on Tuesday. This added to fears that the ECB's crisis lending programs have not helped the banking sector.
Meanwhile, the euro fell to a 10 year low against the yen on the ECB's growing balance sheet.
The Euro advanced against the pound with EUR/GBP gaining 0.28% to 0.8363.
Investors are awaiting the Italian bond auction and jobless claims from the U.S. on Thursday.