Investing.com – The euro was down against the U.S. dollar on Thursday, slipping to a daily low as initial optimism after a joint statement by Germany and France in support of Greece faded ahead of an auction of Spanish government debt.
EUR/USD hit 1.3704 during late Asian trade, the daily low; the pair subsequently consolidated at 1.3737, shedding 0.11%.
The pair was likely to find support at 1.3557, Tuesday’s low and an almost seven-month low and short-term resistance at 1.3782, Wednesday’s high and a three-day high.
The euro eased on Wednesday after French President Nicolas Sarkozy and German Chancellor Angela Merkel said in a statement that they were “convinced the future of Greece is in the euro zone.” The statement came after the leaders held a telephone conference with Greek Prime Minister George Papandreou.
Spain’s Treasury was expected to auction up to EUR4 billion in three-year bonds later in the day and was expected to pay a heavy premium after Italy saw borrowing costs surge to euro-lifetime highs in a debt auction earlier in the week.
Meanwhile, speculation over a possible downgrade of Italy’s sovereign debt rating by Moody’s also weighed.
The euro was also lower against the pound, with EUR/GBP slipping 0.08% to hit 0.8714.
Later Thursday, the euro zone was to release official data on consumer price inflation, while the U.S. was to publish a string of data, with government reports on consumer price inflation, as well as the weekly report on initial jobless claims. The country was also to publish official data on manufacturing activity in New York and Philadelphia.
EUR/USD hit 1.3704 during late Asian trade, the daily low; the pair subsequently consolidated at 1.3737, shedding 0.11%.
The pair was likely to find support at 1.3557, Tuesday’s low and an almost seven-month low and short-term resistance at 1.3782, Wednesday’s high and a three-day high.
The euro eased on Wednesday after French President Nicolas Sarkozy and German Chancellor Angela Merkel said in a statement that they were “convinced the future of Greece is in the euro zone.” The statement came after the leaders held a telephone conference with Greek Prime Minister George Papandreou.
Spain’s Treasury was expected to auction up to EUR4 billion in three-year bonds later in the day and was expected to pay a heavy premium after Italy saw borrowing costs surge to euro-lifetime highs in a debt auction earlier in the week.
Meanwhile, speculation over a possible downgrade of Italy’s sovereign debt rating by Moody’s also weighed.
The euro was also lower against the pound, with EUR/GBP slipping 0.08% to hit 0.8714.
Later Thursday, the euro zone was to release official data on consumer price inflation, while the U.S. was to publish a string of data, with government reports on consumer price inflation, as well as the weekly report on initial jobless claims. The country was also to publish official data on manufacturing activity in New York and Philadelphia.