Investing.com - The euro hit session highs against the U.S. dollar on Tuesday, after Italy saw borrowing costs fall to the lowest level since May 2011 at an auction of five- and ten-year government bonds.
EUR/USD hit 1.2960 during European morning trade, the pair’s highest since Friday; the pair subsequently consolidated at 1.2954, gaining 0.38%.
The pair was likely to find support at 1.2881, the low of October 26 and a two-week low and resistance at 1.2996, the high of October 24.
Italy’s Treasury sold EUR3 billion worth of debt maturing in November 2022 at an average yield of 4.92%, down from 5.24% at a similar auction last month.
Rome also sold EUR4 billion of five-year government bonds at an average yield of 3.80%, down from 4.09% last month.
Earlier Tuesday, concerns over the economic impact of the euro zone’s crisis deepened after official data showed that the number of unemployed in Germany rose by 20,000 in October, compared to expectations for an increase of 10,000.
The unemployment rate ticked up to 6.9%, matching September’s rate, which was revised up from 6.8%.
Another report showed that the Spanish economy contracted by 0.3% in the third quarter, compared to expectations for a 0.4% contraction, extending the recession into a fourth quarter.
The data came one day after Spanish Prime Minister Mariano Rajoy said he would request a bailout "when I think it is in the interests of Spain".
The euro hit a fresh three-day high against the pound, with EUR/GBP up 0.22% to 0.8065 and remained fractionally lower against the yen, with EUR/JPY down 0.07% to 102.89.
The yen found support after fresh easing steps by the Bank of Japan disappointed market expectations for more aggressive measures.
The BoJ increased the size of its asset purchase program by JPY11 trillion at Tuesday’s policy meeting, amid concerns over the deteriorating economic outlook and growing political pressure to step up measures to combat deflation.
Trade volumes were expected to remain light on Tuesday, as U.S. markets were set to remain closed for a second day as a result of Hurricane Sandy.
EUR/USD hit 1.2960 during European morning trade, the pair’s highest since Friday; the pair subsequently consolidated at 1.2954, gaining 0.38%.
The pair was likely to find support at 1.2881, the low of October 26 and a two-week low and resistance at 1.2996, the high of October 24.
Italy’s Treasury sold EUR3 billion worth of debt maturing in November 2022 at an average yield of 4.92%, down from 5.24% at a similar auction last month.
Rome also sold EUR4 billion of five-year government bonds at an average yield of 3.80%, down from 4.09% last month.
Earlier Tuesday, concerns over the economic impact of the euro zone’s crisis deepened after official data showed that the number of unemployed in Germany rose by 20,000 in October, compared to expectations for an increase of 10,000.
The unemployment rate ticked up to 6.9%, matching September’s rate, which was revised up from 6.8%.
Another report showed that the Spanish economy contracted by 0.3% in the third quarter, compared to expectations for a 0.4% contraction, extending the recession into a fourth quarter.
The data came one day after Spanish Prime Minister Mariano Rajoy said he would request a bailout "when I think it is in the interests of Spain".
The euro hit a fresh three-day high against the pound, with EUR/GBP up 0.22% to 0.8065 and remained fractionally lower against the yen, with EUR/JPY down 0.07% to 102.89.
The yen found support after fresh easing steps by the Bank of Japan disappointed market expectations for more aggressive measures.
The BoJ increased the size of its asset purchase program by JPY11 trillion at Tuesday’s policy meeting, amid concerns over the deteriorating economic outlook and growing political pressure to step up measures to combat deflation.
Trade volumes were expected to remain light on Tuesday, as U.S. markets were set to remain closed for a second day as a result of Hurricane Sandy.