Investing.com - The euro fell against the U.S. dollar Friday after Italian borrowing costs declined less at a note auction today than yesterday's auction.
EUR/USD hit a low of 1.2767. The pair is off a high of 1.2878 and is currently trading at 1.2783 down 0.25%.
The pair was likely to find support at 1.2662, Wednesday's low and technical resistance exists at 1.2878, today's high.
The single currency fell after an Italian bond auction failed to live up to expectations set yesterday.
Italy sold euro3 billion of noted due in November 2014 today at an average yield of 4.83%. This is down from 5.62% during December 29th's auction.
Yesterday, Italy sold one year bills at 2.735%, more than half the 5.952 yield gathered at the sale on December 12th.
Ian Stannard of Morgan Stanley explained the euro selling to Bloomberg, "Expectations were built up quite significantly following yesterday's auction. Any rebound we see in EUR/USD is going to remain limited, and we remain bearish over the medium term. The single currency is likely to weaken toward $1.25 by the end of March, and decline to around $1.20 later in the year."
Earlier, the euro gained strength on the words of European Central Bank's President, Mario Draghi when he stated he see signs of stabilization in the region.
The Euro declined against the pound with EUR/GBP falling 0.24% to 0.8338.
Investors are awaiting China's GDP on Monday.
EUR/USD hit a low of 1.2767. The pair is off a high of 1.2878 and is currently trading at 1.2783 down 0.25%.
The pair was likely to find support at 1.2662, Wednesday's low and technical resistance exists at 1.2878, today's high.
The single currency fell after an Italian bond auction failed to live up to expectations set yesterday.
Italy sold euro3 billion of noted due in November 2014 today at an average yield of 4.83%. This is down from 5.62% during December 29th's auction.
Yesterday, Italy sold one year bills at 2.735%, more than half the 5.952 yield gathered at the sale on December 12th.
Ian Stannard of Morgan Stanley explained the euro selling to Bloomberg, "Expectations were built up quite significantly following yesterday's auction. Any rebound we see in EUR/USD is going to remain limited, and we remain bearish over the medium term. The single currency is likely to weaken toward $1.25 by the end of March, and decline to around $1.20 later in the year."
Earlier, the euro gained strength on the words of European Central Bank's President, Mario Draghi when he stated he see signs of stabilization in the region.
The Euro declined against the pound with EUR/GBP falling 0.24% to 0.8338.
Investors are awaiting China's GDP on Monday.