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Forex - EUR/USD steady ahead of Italian debt auction

Published 06/14/2012, 02:32 AM
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Investing.com - The euro was steady against the U.S. dollar on Thursday, ahead of an Italian government debt auction later in the day, as markets also looked ahead to this weekend’s election in Greece.

EUR/USD hit 1.2588 during late Asian trade, the session high; the pair subsequently consolidated at 1.2561, inching up 0.04%.

The pair was likely to find support at 1.2441, Tuesday’s low and resistance at 1.2667, Monday’s high and an almost three-week high.

Italy was due to auction as much as EUR4.5 billion of government bonds later Thursday, just one day after an auction of one-year bonds saw the country’s borrowing costs surge to the highest level since December, amid growing fears the country will be the next euro zone member to require a bailout.

Investors were also focused on the outcome of Sunday’s closely watched general election in Greece, where pro and anti-bailout parties are neck-and-neck in the polls.

On Wednesday, ratings agency Moody’s cut Spain’s credit rating by three notches to just above junk status and warned that further cuts were possible, adding to fears over the crisis in the country’s banking sector.

The euro was slightly higher against the pound, with EUR/GBP up 0.20% to hit 0.8114 but was little changed against the yen, with EUR/JPY inching up 0.01% to hit 99.79.

Later in the day, the euro zone is to release official data on consumer price inflation, while the European Central Bank was to produce its monthly bulletin.

The U.S. was also to produce official data on consumer price inflation, in addition to a government report on initial unemployment claims.


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