Investing.com - The euro slipped against the U.S. dollar on Wednesday, as concerns over the sovereign debt crisis in the euro zone weighed, ahead of Thursday’s European Central Bank policy meeting and Spanish and Italian government debt auctions later in the week.
EUR/USD hit 1.2730 during late Asian trade, the pair’s lowest since Monday; the pair subsequently consolidated at 1.2755, shedding 0.17%.
The pair was likely to find support at 1.2665, Monday’s low and a 16-month low and resistance at 1.2817, Tuesday’s high.
The ECB was expected to keep rates unchanged at 1% at its meeting on Thursday, and was expected to reiterate that governments in the euro zone must step up efforts to tackle the region’s debt crisis.
Meanwhile, Spain and Italy were to sell as much as EUR17 billion in debt on on Thursday and Friday, respectively.
The yield on 10-year Italian government bonds remained above the 7% threshold seen as unsustainable, at 7.14%, while the yield on Spanish 10-year bonds was at 5.54%.
The euro was almost unchanged against the pound, with EUR/GBP dipping 0.01% to hit 0.8251.
Later in the day, German Chancellor Angela Merkel was to meet with Italian Prime Minister Mario Monti, to discuss plans to shore up Italy’s finances.
EUR/USD hit 1.2730 during late Asian trade, the pair’s lowest since Monday; the pair subsequently consolidated at 1.2755, shedding 0.17%.
The pair was likely to find support at 1.2665, Monday’s low and a 16-month low and resistance at 1.2817, Tuesday’s high.
The ECB was expected to keep rates unchanged at 1% at its meeting on Thursday, and was expected to reiterate that governments in the euro zone must step up efforts to tackle the region’s debt crisis.
Meanwhile, Spain and Italy were to sell as much as EUR17 billion in debt on on Thursday and Friday, respectively.
The yield on 10-year Italian government bonds remained above the 7% threshold seen as unsustainable, at 7.14%, while the yield on Spanish 10-year bonds was at 5.54%.
The euro was almost unchanged against the pound, with EUR/GBP dipping 0.01% to hit 0.8251.
Later in the day, German Chancellor Angela Merkel was to meet with Italian Prime Minister Mario Monti, to discuss plans to shore up Italy’s finances.