Investing.com - The euro edged higher against the U.S. dollar on Wednesday, but gains looked likely to remain limited as persistent concerns over the outlook for global growth and uncertainty over a Spanish bailout weighed on demand for the single currency.
EUR/USD hit 1.2913 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.2897, inching up 0.09%.
The pair was likely to find near-term support at 1.2802, the low of October 1 and resistance at 1.2990, Tuesday’s high.
Sentiment on the euro remained fragile amid ongoing uncertainty over Spain’s position on requesting external financial aid and what form a bailout would take.
Earlier in the day, the International Monetary Fund said the crisis in the euro zone remains the greatest threat to the global economy and warned that policymakers need to urgently strengthen fiscal and financial ties within the euro area.
Elsewhere, Italy saw yields rise at an auction of short-term government debt, reflecting investor nervousness over the risk of contagion from Spain.
Italy’s Treasury auctioned EUR8 billion of 12-month bonds at an average yield of 1.94% up from 1.69% previously and the highest level since mid-August.
Meanwhile, concerns over whether international creditors will extend loans to Greece continued, as the country struggles to meet deficit reduction targets.
The euro was almost unchanged against the pound, with EUR/GBP inching up 0.01% to 0.8052 and edged higher against the yen, with EUR/JPY up 0.17% to 101.00.
Trade was expected to remain subdued on Wednesday, with no major economic data releases on the calendar.
EUR/USD hit 1.2913 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.2897, inching up 0.09%.
The pair was likely to find near-term support at 1.2802, the low of October 1 and resistance at 1.2990, Tuesday’s high.
Sentiment on the euro remained fragile amid ongoing uncertainty over Spain’s position on requesting external financial aid and what form a bailout would take.
Earlier in the day, the International Monetary Fund said the crisis in the euro zone remains the greatest threat to the global economy and warned that policymakers need to urgently strengthen fiscal and financial ties within the euro area.
Elsewhere, Italy saw yields rise at an auction of short-term government debt, reflecting investor nervousness over the risk of contagion from Spain.
Italy’s Treasury auctioned EUR8 billion of 12-month bonds at an average yield of 1.94% up from 1.69% previously and the highest level since mid-August.
Meanwhile, concerns over whether international creditors will extend loans to Greece continued, as the country struggles to meet deficit reduction targets.
The euro was almost unchanged against the pound, with EUR/GBP inching up 0.01% to 0.8052 and edged higher against the yen, with EUR/JPY up 0.17% to 101.00.
Trade was expected to remain subdued on Wednesday, with no major economic data releases on the calendar.