Investing.com – The euro's rally against the U.S. dollar stalled at 1.3640 on Wednesday, as borrowing costs in peripheral euro zone nations escalated amid renewed fears over debt downgrades.
EUR/USD hit 1.3639 during European morning trade, the pair's highest since April 15; the pair subsequently consolidated at 1.3610, gaining 0.18%.
The pair was likely to find support at 1.3425, Monday's low and resistance at 1.3817, the high of March 17.
Earlier in the day, the spread between Irish and German benchmark bunds widened to a record 4.54% while Spanish 10-year bond yields rose the most since July 15.
Ratings agency Standard & Poor's said on Tuesday that it may make further cuts to its rating for Anglo Irish Bank if the lender needs more than a EUR 35 billion recapitalization from the Irish government. S&P has already cut its rating of the lender by three notches.
Meanwhile, Spain’s top credit rating at Moody’s Investors Service, held since 2001, was also at risk.
But the euro was up against the pound, with EUR/GBP gaining 0.17% to hit 0.8611.
On Tuesday, data showed that U.S. consumer confidence fell significantly more-than-expected in September as consumers saw no improvement in the labor market.
EUR/USD hit 1.3639 during European morning trade, the pair's highest since April 15; the pair subsequently consolidated at 1.3610, gaining 0.18%.
The pair was likely to find support at 1.3425, Monday's low and resistance at 1.3817, the high of March 17.
Earlier in the day, the spread between Irish and German benchmark bunds widened to a record 4.54% while Spanish 10-year bond yields rose the most since July 15.
Ratings agency Standard & Poor's said on Tuesday that it may make further cuts to its rating for Anglo Irish Bank if the lender needs more than a EUR 35 billion recapitalization from the Irish government. S&P has already cut its rating of the lender by three notches.
Meanwhile, Spain’s top credit rating at Moody’s Investors Service, held since 2001, was also at risk.
But the euro was up against the pound, with EUR/GBP gaining 0.17% to hit 0.8611.
On Tuesday, data showed that U.S. consumer confidence fell significantly more-than-expected in September as consumers saw no improvement in the labor market.