Investing.com - The euro pushed higher against the U.S. dollar in thin trade on Tuesday, as market participants remained focused on Hurricane Sandy, but gains were limited ahead of an Italian bond auction later in the day.
EUR/USD hit 1.2940 during late Asian trade, the session high; the pair subsequently consolidated at 1.2930, gaining 0.20%.
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.
Sentiment on the single currency remained fragile after Spanish Prime Minister Mariano Rajoy said Monday that he would request a bailout "when I think it is in the interests of Spain".
His comments came after official data showed Spanish retail sales dropped at the fastest pace on record in September, further clouding the economic outlook.
Later Tuesday, Italy was planning to auction as much as EUR7 billion of government bonds, but investor remained jittery amid concerns over former Prime Minister Silvio Berlusconi's threat to bring down the current government.
The euro was slightly higher against the pound, with EUR/GBP edging up 0.12% to 0.8057, but slipped lower against the yen, with EUR/JPY sliding 0.15% to 102.81.
The yen strengthened against the dollar and the euro earlier 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 following its policy meeting earlier. In a joint statement with the central bank, Economics Minister Seiji Maehara said the new measures were an important step towards defeating deflation.
EUR/USD hit 1.2940 during late Asian trade, the session high; the pair subsequently consolidated at 1.2930, gaining 0.20%.
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.
Sentiment on the single currency remained fragile after Spanish Prime Minister Mariano Rajoy said Monday that he would request a bailout "when I think it is in the interests of Spain".
His comments came after official data showed Spanish retail sales dropped at the fastest pace on record in September, further clouding the economic outlook.
Later Tuesday, Italy was planning to auction as much as EUR7 billion of government bonds, but investor remained jittery amid concerns over former Prime Minister Silvio Berlusconi's threat to bring down the current government.
The euro was slightly higher against the pound, with EUR/GBP edging up 0.12% to 0.8057, but slipped lower against the yen, with EUR/JPY sliding 0.15% to 102.81.
The yen strengthened against the dollar and the euro earlier 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 following its policy meeting earlier. In a joint statement with the central bank, Economics Minister Seiji Maehara said the new measures were an important step towards defeating deflation.