Investing.com - The euro was higher against the U.S. dollar on Thursday, following well received auctions of Spanish and French government debt, but gains were limited amid uncertainty over the outcome of talks between Greece and the country’s creditors.
EUR/USD hit 1.2918 during European early afternoon trade, the pair’s highest since January 5; the pair subsequently consolidated at 1.2906, gaining 0.33%.
The pair was likely to find support at 1.2733, Wednesday’s low and short-term resistance 1.2946, the high of January 5.
Spain auctioned more than the targeted amount of EUR4.5 billion, selling EUR6.6 billion of bonds earlier.
The yield on the four-year bond was 4%, up from 3.9% at the last auction, while yields on the nine and 10-year bond were lower, at 4.5%, down from 5.1% at the previous auction, and 5.4% respectively, against 6.98% in December.
France sold EUR8 billion of medium and long term government debt at lower yields to previous auctions.
Elsewhere, talks between Greek Prime Minister Lucas Papademos and the country’s creditors continued, after breaking down last week amid disagreements over how much money investors will lose by swapping their bonds.
Meanwhile, Fitch’s said that it expected its ratings review of six euro zone countries would result in downgrades of one to two notches in most cases. The review is set to be completed at the end of January.
The euro was higher against the pound, with EUR/GBP adding 0.33% to hit 0.8358.
Later Thursday, the U.S. was to publish official data on building reports and housing starts as well as a report on consumer price inflation. The country was also to release government data on unemployment claims and a separate report on manufacturing activity in the Philadelphia area.
EUR/USD hit 1.2918 during European early afternoon trade, the pair’s highest since January 5; the pair subsequently consolidated at 1.2906, gaining 0.33%.
The pair was likely to find support at 1.2733, Wednesday’s low and short-term resistance 1.2946, the high of January 5.
Spain auctioned more than the targeted amount of EUR4.5 billion, selling EUR6.6 billion of bonds earlier.
The yield on the four-year bond was 4%, up from 3.9% at the last auction, while yields on the nine and 10-year bond were lower, at 4.5%, down from 5.1% at the previous auction, and 5.4% respectively, against 6.98% in December.
France sold EUR8 billion of medium and long term government debt at lower yields to previous auctions.
Elsewhere, talks between Greek Prime Minister Lucas Papademos and the country’s creditors continued, after breaking down last week amid disagreements over how much money investors will lose by swapping their bonds.
Meanwhile, Fitch’s said that it expected its ratings review of six euro zone countries would result in downgrades of one to two notches in most cases. The review is set to be completed at the end of January.
The euro was higher against the pound, with EUR/GBP adding 0.33% to hit 0.8358.
Later Thursday, the U.S. was to publish official data on building reports and housing starts as well as a report on consumer price inflation. The country was also to release government data on unemployment claims and a separate report on manufacturing activity in the Philadelphia area.