Investing.com - The euro rose against the dollar on Tuesday after hopes began to build anew that the European Central Bank will buy sovereign debt from countries such as Italy and Spain, where borrowing costs fell earlier.
In U.S. trading on Tuesday, EUR/USD was trading up 0.53% at 1.2566, up from a low of 1.2466 and off from a high of 1.2576.
The pair was likely to find support at 1.2466, today’s low, and resistance at 1.2590, Thursday’s high.
European Central Bank President Mario Draghi earlier canceled plans to travel to the U.S. Federal Reserve's annual symposium in Jackson Hole, Wyoming, which fueled talk European Central Bank may be ready to announce plans to intervene in sovereign debt markets to lower borrowing costs across Europe.
Earlier Tuesday, borrowing costs in Italy dropped at an auction of two-year government bonds.
Italy’s Treasury sold EUR3.0 billion of bonds maturing in May 2014, the top end of the targeted range, at an average yield of 3.06%, down from 4.86% at a similar auction last month.
Meanwhile in Spain, the Treasury sold EUR1.67 billion in three-month bills at an average interest rate of 0.95%, down from 2.43% about a month ago.
It sold EUR1.93 billion in six-month bills yielding 2.03% percent, down from 3.69% during a previous auction.
Demand was strong.
Meanwhile, markets are anticipating Fed Chairman Ben Bernanke's speech at Jackson Hole later this week.
Bernanke has announced policy measures at previous Jackson Hole meetings, and expectations he could follow suit this week pressured the dollar lower.
Fed officials have said they cannot rule out the need for a third round of quantitative easing, or bond purchases from banks that weaken the dollar with the aim of kick-starting recovery.
Also in the U.S., consumer confidence plunged for August to its lowest levels in 9 months.
The Conference Board said earlier that it consumer confidence index dropped to 60.6 in August from 65.4 in July, though still well above the 45.2 index level of August 2011.
Analysts were expecting a reading of 66.0.
Housing data out of the U.S. came in better than expected.
The June Standard & Poor's/Case-Shiller home price index released Tuesday showed a gain of 0.5% from June 2011, the first annual increase since 2010.
Analysts were expecting the figure to contract 0.1%.
The euro, meanwhile, was up against the pound and up against the yen, with EUR/GBP up 0.33% at 0.7940, and EUR/JPY trading up 0.24% at 98.65.
In U.S. trading on Tuesday, EUR/USD was trading up 0.53% at 1.2566, up from a low of 1.2466 and off from a high of 1.2576.
The pair was likely to find support at 1.2466, today’s low, and resistance at 1.2590, Thursday’s high.
European Central Bank President Mario Draghi earlier canceled plans to travel to the U.S. Federal Reserve's annual symposium in Jackson Hole, Wyoming, which fueled talk European Central Bank may be ready to announce plans to intervene in sovereign debt markets to lower borrowing costs across Europe.
Earlier Tuesday, borrowing costs in Italy dropped at an auction of two-year government bonds.
Italy’s Treasury sold EUR3.0 billion of bonds maturing in May 2014, the top end of the targeted range, at an average yield of 3.06%, down from 4.86% at a similar auction last month.
Meanwhile in Spain, the Treasury sold EUR1.67 billion in three-month bills at an average interest rate of 0.95%, down from 2.43% about a month ago.
It sold EUR1.93 billion in six-month bills yielding 2.03% percent, down from 3.69% during a previous auction.
Demand was strong.
Meanwhile, markets are anticipating Fed Chairman Ben Bernanke's speech at Jackson Hole later this week.
Bernanke has announced policy measures at previous Jackson Hole meetings, and expectations he could follow suit this week pressured the dollar lower.
Fed officials have said they cannot rule out the need for a third round of quantitative easing, or bond purchases from banks that weaken the dollar with the aim of kick-starting recovery.
Also in the U.S., consumer confidence plunged for August to its lowest levels in 9 months.
The Conference Board said earlier that it consumer confidence index dropped to 60.6 in August from 65.4 in July, though still well above the 45.2 index level of August 2011.
Analysts were expecting a reading of 66.0.
Housing data out of the U.S. came in better than expected.
The June Standard & Poor's/Case-Shiller home price index released Tuesday showed a gain of 0.5% from June 2011, the first annual increase since 2010.
Analysts were expecting the figure to contract 0.1%.
The euro, meanwhile, was up against the pound and up against the yen, with EUR/GBP up 0.33% at 0.7940, and EUR/JPY trading up 0.24% at 98.65.