Investing.com - The euro was trading close to a session low against the U.S. dollar on Thursday, following the release of weaker-than-expected U.S. employment data as worries over the handling of Spain’s debt crisis continued to weigh despite a relatively successful Spanish government debt sale.
EUR/USD hit 1.3070 during European afternoon trade, the daily low; the pair subsequently consolidated at 1.3079, shedding 0.33%.
The pair was likely to find support at 1.3032, the low of April 9 and resistance at 1.3164, the day’s high.
The U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending April 14 fell by 2,000 to a seasonally adjusted 386,000, disappointing expectations for a decline of 18,000 to 370,000.
The previous week’s figure was revised up to 388,000 from 380,000.
Jobless claims have remained below 400,000, a level historically associated with an improving labor market, in 23 of the past 25 weeks, though lately claims have been pushing higher from the 350,000 associated with above-average job growth.
Earlier in the day, Spain raised slightly more than the full targeted amount of EUR2.5 billion, while the yield on the country’s 10-year bonds was higher but 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 increase in 10-year bond yields reflected concerns that that Spain’s government may struggle to reduce one of the largest deficits in the euro zone in the face of a looming recession.
Meanwhile, worries over Spain’s troubled banking sector weighed, after the country’s central bank said Wednesday that the amount of bad loans at domestic banks rose to an 18-year high in February.
Elsewhere, the euro was also lower against the pound with EUR/GBP declining 0.32%, to hit 0.8163.
Later in the day, the U.S. was to release industry data on existing home sales and a report on manufacturing activity in the Philadelphia area.
EUR/USD hit 1.3070 during European afternoon trade, the daily low; the pair subsequently consolidated at 1.3079, shedding 0.33%.
The pair was likely to find support at 1.3032, the low of April 9 and resistance at 1.3164, the day’s high.
The U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending April 14 fell by 2,000 to a seasonally adjusted 386,000, disappointing expectations for a decline of 18,000 to 370,000.
The previous week’s figure was revised up to 388,000 from 380,000.
Jobless claims have remained below 400,000, a level historically associated with an improving labor market, in 23 of the past 25 weeks, though lately claims have been pushing higher from the 350,000 associated with above-average job growth.
Earlier in the day, Spain raised slightly more than the full targeted amount of EUR2.5 billion, while the yield on the country’s 10-year bonds was higher but 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 increase in 10-year bond yields reflected concerns that that Spain’s government may struggle to reduce one of the largest deficits in the euro zone in the face of a looming recession.
Meanwhile, worries over Spain’s troubled banking sector weighed, after the country’s central bank said Wednesday that the amount of bad loans at domestic banks rose to an 18-year high in February.
Elsewhere, the euro was also lower against the pound with EUR/GBP declining 0.32%, to hit 0.8163.
Later in the day, the U.S. was to release industry data on existing home sales and a report on manufacturing activity in the Philadelphia area.