Forex - EUR/USD lower on Spanish fears, firm U.S. confidence data

Published 05/25/2012, 12:20 PM
Updated 05/25/2012, 12:21 PM
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Investing.com - The euro was lower against the U.S. dollar on Friday after a Spanish bank appeared set to ask for bailout assistance, while consumer confidence data in the U.S. surprised on the upside.

In U.S. trading on Friday, EUR/USD was trading down 0.14% at 1.2514, up from a session low of 1.2497, and off from a high of 1.2603.

The pair was likely to test support at 1.2516, the low of May 24, and resistance at 1.2619, the high of May 24.

In Spain, reports emerged that the Bankia financial institution will ask the government for EUR15 billion, which sparked fears the European debt crisis is heating up anew in Spain.

Meanwhile, calls from Spain's regional Catalonian government for Madrid for help refinance its debts also pushed the euro down to near two-year lows.

Sentiment Greece may exit the eurozone due to widespread anger over austerity measures attached to bailout money continued to weigh down on the currency.

Meanwhile in the U.S. consumer confidence figures surprised on the upside.

The Thomson Reuters/University of Michigan's consumer sentiment index rose to 79.3 in May, topping forecasts for 77.8.
 
The reading was the highest in more than four years.

The euro, meanwhile, was down slightly against the pound and down against the yen, with EUR/GBP down 0.02% at 0.7996 and EUR/JPY trading down 0.09% at 99.66.








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