Investing.com - The euro held steady against the dollar on Wednesday amid budding hopes the European Central Bank will buy sovereign debt from countries such as Spain and Italy, where borrowing costs fell earlier.
In Asian trading on Wednesday, EUR/USD was trading up 0.02% at 1.2567, up from a low of 1.2566 and off from a high of 1.2570.
The pair was likely to find support at 1.2466, Tuesday’s low, and resistance at 1.2590, last Thursday's high.
European Central Bank President Mario Draghi earlier canceled his trip to the U.S. Federal Reserve's annual symposium in Jackson Hole, Wyoming, which fueled talk the European Central Bank may be closer to intervening in sovereign debt markets to lower borrowing costs.
Earlier, 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 against the euro.
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 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 0.01% at 0.7943, and EUR/JPY trading up 0.14% at 98.78.
Later Wednesday, Germany will release preliminary data on consumer price inflation.
Also on Wednesday, the U.S. will produce revised data on second quarter gross domestic product, the broadest measure of economic activity and the primary gauge of the economy's health.
The U.S. will also release data on pending home sales, as well as on crude oil stockpiles.
The Federal Reserve will release its Beige Book.
In Asian trading on Wednesday, EUR/USD was trading up 0.02% at 1.2567, up from a low of 1.2566 and off from a high of 1.2570.
The pair was likely to find support at 1.2466, Tuesday’s low, and resistance at 1.2590, last Thursday's high.
European Central Bank President Mario Draghi earlier canceled his trip to the U.S. Federal Reserve's annual symposium in Jackson Hole, Wyoming, which fueled talk the European Central Bank may be closer to intervening in sovereign debt markets to lower borrowing costs.
Earlier, 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 against the euro.
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 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 0.01% at 0.7943, and EUR/JPY trading up 0.14% at 98.78.
Later Wednesday, Germany will release preliminary data on consumer price inflation.
Also on Wednesday, the U.S. will produce revised data on second quarter gross domestic product, the broadest measure of economic activity and the primary gauge of the economy's health.
The U.S. will also release data on pending home sales, as well as on crude oil stockpiles.
The Federal Reserve will release its Beige Book.