Investing.com - The euro slipped lower against the U.S. dollar on Tuesday, as unease over Spain’s fragile banking sector mounted while comments by a senior European Central Bank official also weighed.
EUR/USD pulled back from 1.2573, the session high, to hit 1.2537 during European early afternoon trade, dipping 0.04%.
The pair was likely to find short-term support at 1.2495, Friday’s low and a 22-month low and resistance at 1.2623, Monday’s high.
The euro came under pressure after Ewald Nowotny, a member of the ECB’s governing council, said that the bank has not discussed restarting its bond purchasing program.
Demand for the euro was also hit by concerns over the situation in Spain, where rising bond yields, the growing costs of bank rescues and a recession hit economy fuelled fears that Madrid will be forced to seek an international bailout.
Earlier Tuesday, Spain’s Treasury auctioned EUR8.5 billion of six-month bonds at an average yield of 2.10%, a six-month high, up from 1.77% at a similar auction last month.
The yield on Spanish 10-year bonds rose to 6.48% following the auction, hovering just below the 2012 high of 6.50% hit Monday after the government announced that it was to recapitalize one of the country’s largest commercial lenders.
Elsewhere, the euro was fractionally lower against the pound, with EUR/GBP dipping 0.03% to hit 0.7995, but inched higher against the yen, with EUR/JPY edging up 0.04% to hit 99.69.
Later in the day, Germany was to release preliminary data on consumer price inflation, while the U.S. was to release reports on house price inflation and consumer confidence.
EUR/USD pulled back from 1.2573, the session high, to hit 1.2537 during European early afternoon trade, dipping 0.04%.
The pair was likely to find short-term support at 1.2495, Friday’s low and a 22-month low and resistance at 1.2623, Monday’s high.
The euro came under pressure after Ewald Nowotny, a member of the ECB’s governing council, said that the bank has not discussed restarting its bond purchasing program.
Demand for the euro was also hit by concerns over the situation in Spain, where rising bond yields, the growing costs of bank rescues and a recession hit economy fuelled fears that Madrid will be forced to seek an international bailout.
Earlier Tuesday, Spain’s Treasury auctioned EUR8.5 billion of six-month bonds at an average yield of 2.10%, a six-month high, up from 1.77% at a similar auction last month.
The yield on Spanish 10-year bonds rose to 6.48% following the auction, hovering just below the 2012 high of 6.50% hit Monday after the government announced that it was to recapitalize one of the country’s largest commercial lenders.
Elsewhere, the euro was fractionally lower against the pound, with EUR/GBP dipping 0.03% to hit 0.7995, but inched higher against the yen, with EUR/JPY edging up 0.04% to hit 99.69.
Later in the day, Germany was to release preliminary data on consumer price inflation, while the U.S. was to release reports on house price inflation and consumer confidence.