Investing.com - The euro slipped lower against the pound on Wednesday, as ongoing uncertainty over a possible Spanish bailout and worries over the outlook for the global economic recovery dampened investor demand for the single currency.
EUR/GBP hit 0.8032 during European early afternoon trade, the pair’s lowest since October 5; the pair subsequently consolidated at 0.8037, shedding 0.18%.
The euro remained under pressure amid ongoing uncertainty over Spain’s position on requesting external financial aid and what form a bailout would take.
Earlier in the day, the International Monetary Fund said the crisis in the euro zone remains the greatest threat to the global economy and warned that policymakers need to urgently strengthen fiscal and financial ties within the euro area.
Elsewhere, Italy saw yields rise at an auction of short-term government debt, reflecting investor nervousness over the risk of contagion from Spain.
Italy’s Treasury auctioned EUR8 billion of 12-month bonds at an average yield of 1.94% up from 1.69% previously and the highest level since mid-August.
Meanwhile, concerns over whether international creditors will extend loans to Greece continued, as the country struggles to meet deficit reduction targets.
The euro was weaker against the U.S. dollar and the yen, with EUR/USD down 0.19% to 1.2861 and EUR/JPY sliding 0.15% to 100.68.
Also Wednesday, Spanish Prime Minister Mariano Rajoy was in Paris for talks with French President Francois Hollande.
EUR/GBP hit 0.8032 during European early afternoon trade, the pair’s lowest since October 5; the pair subsequently consolidated at 0.8037, shedding 0.18%.
The euro remained under pressure amid ongoing uncertainty over Spain’s position on requesting external financial aid and what form a bailout would take.
Earlier in the day, the International Monetary Fund said the crisis in the euro zone remains the greatest threat to the global economy and warned that policymakers need to urgently strengthen fiscal and financial ties within the euro area.
Elsewhere, Italy saw yields rise at an auction of short-term government debt, reflecting investor nervousness over the risk of contagion from Spain.
Italy’s Treasury auctioned EUR8 billion of 12-month bonds at an average yield of 1.94% up from 1.69% previously and the highest level since mid-August.
Meanwhile, concerns over whether international creditors will extend loans to Greece continued, as the country struggles to meet deficit reduction targets.
The euro was weaker against the U.S. dollar and the yen, with EUR/USD down 0.19% to 1.2861 and EUR/JPY sliding 0.15% to 100.68.
Also Wednesday, Spanish Prime Minister Mariano Rajoy was in Paris for talks with French President Francois Hollande.