Investing.com - The euro was almost unchanged against the U.S. dollar on Tuesday, as renewed concerns over the euro zone’s debt crisis weighed on demand for the single currency ahead of Italian bond auctions programmed later in the week.
EUR/USD hit 1.3083 during European afternoon trade, the pair’s highest since December 23; the pair subsequently consolidated at 1.3067, easing up 0.06%.
The pair was likely to find support at 1.2994, the low of December 16 and resistance at 1.3131, the high of December 20.
Trading volumes were low, resulting in subdued trade as many investors were already away on year-end leave, resulting in subdued trade.
The single currency came under pressure as the yield on Italian ten-year bonds rose above the 7% threshold, a level widely considered to be unsustainable, adding to concerns over the country’s financial woes.
Meanwhile, Spain’s new government announced negative economic growth in the final quarter of 2011 and the first quarter of the new year, technically putting the country back into recession.
Markets were also jittery after data showed earlier that the use of the European Central Bank's overnight deposit facility reached a new, all-time high Monday, as euro zone banks increasingly turned to the ECB as a safe-haven for extra funds.
The report added to speculation that the central bank’s three-year loan operation last week did little to strengthen the region’s banking sector.
Sentiment found moderate support after a flurry of upbeat U.S. data last week spurred hopes of recovery in the world’s largest economy.
Elsewhere, the euro was fractionally lower against the pound with EUR/GBP edging down 0.01%, to trade at 0.8352.
Later in the day, the U.S. was to publish industry data on house price inflation, as well as a report on consumer confidence and manufacturing activity in Richmond.
EUR/USD hit 1.3083 during European afternoon trade, the pair’s highest since December 23; the pair subsequently consolidated at 1.3067, easing up 0.06%.
The pair was likely to find support at 1.2994, the low of December 16 and resistance at 1.3131, the high of December 20.
Trading volumes were low, resulting in subdued trade as many investors were already away on year-end leave, resulting in subdued trade.
The single currency came under pressure as the yield on Italian ten-year bonds rose above the 7% threshold, a level widely considered to be unsustainable, adding to concerns over the country’s financial woes.
Meanwhile, Spain’s new government announced negative economic growth in the final quarter of 2011 and the first quarter of the new year, technically putting the country back into recession.
Markets were also jittery after data showed earlier that the use of the European Central Bank's overnight deposit facility reached a new, all-time high Monday, as euro zone banks increasingly turned to the ECB as a safe-haven for extra funds.
The report added to speculation that the central bank’s three-year loan operation last week did little to strengthen the region’s banking sector.
Sentiment found moderate support after a flurry of upbeat U.S. data last week spurred hopes of recovery in the world’s largest economy.
Elsewhere, the euro was fractionally lower against the pound with EUR/GBP edging down 0.01%, to trade at 0.8352.
Later in the day, the U.S. was to publish industry data on house price inflation, as well as a report on consumer confidence and manufacturing activity in Richmond.