Investing.com – The euro slipped against the U.S. dollar on Tuesday, as a rise in Italian and Spanish bond yields and news that Germany's ruling party said countries could exit the euro zone voluntarily weighed on risk appetite.
EUR/USD hit 1.3576 during late Asian trade, the pair’s lowest since November 10; the pair subsequently consolidated at 1.3604, sliding 0.21%.
The pair was likely to find support at 1.3522m, the low of November 9 and resistance at 1.3794, the high of November 11.
On Monday the yield on Italian five-year bonds climbed to a euro-era high of 6.29% in the first auction of the country’s debt since former European Commissioner Mario Monti was appointed prime minister.
Meanwhile, the yield on 10-year Spanish government bonds rose above 6% for the first time since August.
Also Monday, German Chancellor Angela Merkel’s ruling CDU party approved a measure that would allow countries to leave the 17-nation euro zone if they choose, but remain within the European Union.
Germany will now need to persuade EU partners to agree to changes to the bloc's governing treaty to allow a country to leave the euro zone.
The euro was also lower against the pound, with EUR/GBP slipping 0.11% to hit 0.8559.
Earlier Tuesday, official data showed that Germany’s gross domestic product rose in line with expectations in the third quarter, expanding 0.5%, from an upwardly revised 0.3% in the preceding quarter.
EUR/USD hit 1.3576 during late Asian trade, the pair’s lowest since November 10; the pair subsequently consolidated at 1.3604, sliding 0.21%.
The pair was likely to find support at 1.3522m, the low of November 9 and resistance at 1.3794, the high of November 11.
On Monday the yield on Italian five-year bonds climbed to a euro-era high of 6.29% in the first auction of the country’s debt since former European Commissioner Mario Monti was appointed prime minister.
Meanwhile, the yield on 10-year Spanish government bonds rose above 6% for the first time since August.
Also Monday, German Chancellor Angela Merkel’s ruling CDU party approved a measure that would allow countries to leave the 17-nation euro zone if they choose, but remain within the European Union.
Germany will now need to persuade EU partners to agree to changes to the bloc's governing treaty to allow a country to leave the euro zone.
The euro was also lower against the pound, with EUR/GBP slipping 0.11% to hit 0.8559.
Earlier Tuesday, official data showed that Germany’s gross domestic product rose in line with expectations in the third quarter, expanding 0.5%, from an upwardly revised 0.3% in the preceding quarter.