Investing.com - The euro fell against the U.S. dollar on Wednesday after dipping to levels not seen since 2010 on growing fears Spain will run into difficulties bailing out its banking sector and regional governments.
In Asian trading on Wednesday, EUR/USD was trading down 0.18% at 1.2481, up from a session low of 1.2477, and off from a high of 1.2506.
The pair was likely to test support at 1.2462, the low of May 29, and resistance at 1.2574, the high of May 29.
Spain’s government is set to arrange a EUR19 billion recapitalization program of one of the country’s largest commercial lenders, Bankia, while the regional government of Catalonia has asked Madrid for help refinancing its debts.
Reports that Spain will issue bonds to fund the banking sector and regional governments — when yields in public debt auctions have already spiked to around 7 percent — fueled fears the debt crisis is heating up in Spain.
Spain is home to a much larger economy that Greece, which was bailed out by the European Commission, the European Central Bank and the International Monetary Fund earlier this year via EUR130 billion in rescue funding.
Talk that Beijing may soon launch economic stimulus measures to reheat its cooling economy cushioned the euro's slide.
Sluggish U.S. housing data dampened the greenback's gains.
The S&P/Case-Shiller Home Price Index for March fell by 2% in the first quarter of 2012 from the fourth quarter of last year and was down 1.9% versus the first quarter of 2011.
The March 10-City composite was down 2.8% from March of last year, while the 20-City composite was down 2.6% on year.
Home prices are down 35 percent from their peak in 2006.
Meanwhile the Conference Board's U.S. consumer confidence dropped unexpectedly in May.
The euro, meanwhile, was down against the pound and down against the yen, with EUR/GBP down 0.13% at 0.7982 and EUR/JPY trading down 0.19% at 99.20.
On Wednesday in the U.S., pending homes sales figures are due out as are numbers on mortgage applications.
In Europe, ECB President Mario Draghi is due to appear in public.
In Asian trading on Wednesday, EUR/USD was trading down 0.18% at 1.2481, up from a session low of 1.2477, and off from a high of 1.2506.
The pair was likely to test support at 1.2462, the low of May 29, and resistance at 1.2574, the high of May 29.
Spain’s government is set to arrange a EUR19 billion recapitalization program of one of the country’s largest commercial lenders, Bankia, while the regional government of Catalonia has asked Madrid for help refinancing its debts.
Reports that Spain will issue bonds to fund the banking sector and regional governments — when yields in public debt auctions have already spiked to around 7 percent — fueled fears the debt crisis is heating up in Spain.
Spain is home to a much larger economy that Greece, which was bailed out by the European Commission, the European Central Bank and the International Monetary Fund earlier this year via EUR130 billion in rescue funding.
Talk that Beijing may soon launch economic stimulus measures to reheat its cooling economy cushioned the euro's slide.
Sluggish U.S. housing data dampened the greenback's gains.
The S&P/Case-Shiller Home Price Index for March fell by 2% in the first quarter of 2012 from the fourth quarter of last year and was down 1.9% versus the first quarter of 2011.
The March 10-City composite was down 2.8% from March of last year, while the 20-City composite was down 2.6% on year.
Home prices are down 35 percent from their peak in 2006.
Meanwhile the Conference Board's U.S. consumer confidence dropped unexpectedly in May.
The euro, meanwhile, was down against the pound and down against the yen, with EUR/GBP down 0.13% at 0.7982 and EUR/JPY trading down 0.19% at 99.20.
On Wednesday in the U.S., pending homes sales figures are due out as are numbers on mortgage applications.
In Europe, ECB President Mario Draghi is due to appear in public.