Investing.com - The euro was ticking up and down between small gains and losses against the U.S. dollar on Tuesday, trading close to a 22-month trough as growing concerns over Spain’s rising borrowing costs and its weakening banking sector weighed.
EUR/USD hit 1.2548 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.2540, dipping 0.01%.
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.
Market participants remained jittery amid 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.
But investor sentiment found some support after Chinese media reports fuelled speculation that Beijing may soon launch an economic stimulus program, to counter signs of a slowdown in growth in the world’s second largest economy.
The dollar was unchanged after data showed that the S&P/Case-Shiller U.S. home price index fell at an annualized rate of 2.6% in March, declining for the 21st consecutive month.
A separate report by the Conference Board showed that U.S. consumer confidence declined unexpectedly in May.
The euro was little changed against the pound and the yen, with EUR/GBP dipping 0.04% to hit 0.7994 and EUR/JPY inching down 0.01% to hit 99.64.
Also Tuesday, preliminary data showed that German consumer price inflation eased by 0.2% in May, compared to expectations for a 0.1% decline.
EUR/USD hit 1.2548 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.2540, dipping 0.01%.
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.
Market participants remained jittery amid 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.
But investor sentiment found some support after Chinese media reports fuelled speculation that Beijing may soon launch an economic stimulus program, to counter signs of a slowdown in growth in the world’s second largest economy.
The dollar was unchanged after data showed that the S&P/Case-Shiller U.S. home price index fell at an annualized rate of 2.6% in March, declining for the 21st consecutive month.
A separate report by the Conference Board showed that U.S. consumer confidence declined unexpectedly in May.
The euro was little changed against the pound and the yen, with EUR/GBP dipping 0.04% to hit 0.7994 and EUR/JPY inching down 0.01% to hit 99.64.
Also Tuesday, preliminary data showed that German consumer price inflation eased by 0.2% in May, compared to expectations for a 0.1% decline.