Investing.com – The euro rebounded against the U.S. dollar on Wednesday but remained close to an 11-week low, as pressures in euro zone bond markets widened to more countries, including Belgium.
EUR/USD hit 1.3045 during late Asian trade, the daily high; the pair subsequently consolidated at 1.3040, gaining 0.45%.
The pair was likely to find support at 1.2828, the low of September 14 and resistance at 1.3149, Tuesday’s high.
On Tuesday, the cost of insuring Italian, Spanish and Belgian sovereign debt against default rose to record highs as investor confidence in the economic health of the euro zone continued to crumble. Belgian sovereign debt is typically considered closer to the core of the euro zone than the periphery.
Meanwhile, ratings agency, Standard & Poor's threatened to downgrade Portugal’s credit rating.
Also Tuesday, European Central Bank President Jean-Claude Trichet said European policymakers need to assert authority to fight “demanding” market conditions. “We need a sense of direction,” Trichet said. Observers “are tending to underestimate the determination of governments.”
The euro was also up against the pound, with EUR/USD gaining 0.42% to hit 0.8376.
Later in the day, the euro zone was to release revised data on manufacturing activity, while the U.S. was to release a report on ADP non-farm employment change, as well as official data on manufacturing activity. In addition, the Federal Reserve was to publish its Beige Book.
EUR/USD hit 1.3045 during late Asian trade, the daily high; the pair subsequently consolidated at 1.3040, gaining 0.45%.
The pair was likely to find support at 1.2828, the low of September 14 and resistance at 1.3149, Tuesday’s high.
On Tuesday, the cost of insuring Italian, Spanish and Belgian sovereign debt against default rose to record highs as investor confidence in the economic health of the euro zone continued to crumble. Belgian sovereign debt is typically considered closer to the core of the euro zone than the periphery.
Meanwhile, ratings agency, Standard & Poor's threatened to downgrade Portugal’s credit rating.
Also Tuesday, European Central Bank President Jean-Claude Trichet said European policymakers need to assert authority to fight “demanding” market conditions. “We need a sense of direction,” Trichet said. Observers “are tending to underestimate the determination of governments.”
The euro was also up against the pound, with EUR/USD gaining 0.42% to hit 0.8376.
Later in the day, the euro zone was to release revised data on manufacturing activity, while the U.S. was to release a report on ADP non-farm employment change, as well as official data on manufacturing activity. In addition, the Federal Reserve was to publish its Beige Book.