Investing.com – The euro was lower against the Swiss franc on Wednesday, retreating from a four day high as concerns that Portugal would still require a bailout persisted after the country sold EUR1.25 billion of bonds at auction.
EUR/CHF retreated from 1.2692, the pair’s highest since January 6, to hit 1.2625 during European afternoon trade, slipping 0.04%.
The pair was likely to find support at 1.2514, Tuesday’s low and resistance at 1.2721, the high of January 6.
Earlier in the day, Portugal sold the maximum amount of EUR1.25 billion bonds at auction. The country’s government debt agency said the average yield on the three-year treasury bill was 5.4%, up from 4% in the last sale, while the yield on nine-year bonds was 6.7%, down slightly from 6.8% at the last auction.
The agency said high demand meant Portugal could have sold more than double the amount offered.
While the premium investors demanded to hold Portuguese government bonds rose less than some analysts had expected, concerns remained over the high sovereign debt levels among more vulnerable euro member states.
Meanwhile, the euro was marginally higher against the U.S. dollar, with EUR/USD easing up 0.06% to hit 1.2981.
Also Wednesday, the European Union Monetary Affairs Commissioner Olli Rehn, writing in the Financial Times said that the EU’s main bailout fund, the EUR440 billion European Financial Stability Facility should be "reinforced" and its scope should be "widened."
EUR/CHF retreated from 1.2692, the pair’s highest since January 6, to hit 1.2625 during European afternoon trade, slipping 0.04%.
The pair was likely to find support at 1.2514, Tuesday’s low and resistance at 1.2721, the high of January 6.
Earlier in the day, Portugal sold the maximum amount of EUR1.25 billion bonds at auction. The country’s government debt agency said the average yield on the three-year treasury bill was 5.4%, up from 4% in the last sale, while the yield on nine-year bonds was 6.7%, down slightly from 6.8% at the last auction.
The agency said high demand meant Portugal could have sold more than double the amount offered.
While the premium investors demanded to hold Portuguese government bonds rose less than some analysts had expected, concerns remained over the high sovereign debt levels among more vulnerable euro member states.
Meanwhile, the euro was marginally higher against the U.S. dollar, with EUR/USD easing up 0.06% to hit 1.2981.
Also Wednesday, the European Union Monetary Affairs Commissioner Olli Rehn, writing in the Financial Times said that the EU’s main bailout fund, the EUR440 billion European Financial Stability Facility should be "reinforced" and its scope should be "widened."