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Forex - EUR/USD rises weakly ahead of Portugal debt auction

Published 01/12/2011, 02:24 AM
EUR/USD
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EUR/GBP
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Investing.com – The euro rose weakly against the U.S. dollar on Wednesday, as investors grew increasingly cautious ahead of a critical Treasury bill sale by debt strapped euro zone member Portugal later in the day.

EUR/USD hit 1.3017 during late Asian trade, the pair’s highest since December 7; the pair subsequently consolidated at 1.2996, easing up 0.17%.

The pair was likely to find support at 1.2872, Monday’s low and a four month low resistance at 1.3169, last Thursday’s high.

Portugal was scheduled to auction up to EUR1.25 billion worth of debt later Wednesday.

Portugal's Prime Minister José Sócrates said Tuesday the country would not need a bailout, however analysts widely believe it could become the next euro zone member to request aid from the European Union's and International Monetary Fund's joint aid program.

But the single currency was supported as European Union leaders looked increasingly likely to discuss the option of raising the lending capacity of the currency bloc's rescue fund in an effort to calm markets.

Meanwhile, the euro was lower against the pound, with EUR/GBP slipping 0.06% to hit 0.8311.

Also Wednesday, the euro zone was to publish official data on industrial production. Elsewhere, the U.S. was to release a flurry of data, with reports on import prices and the federal budget balance while the Federal Reserve was to publish its Beige Book.

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