Investing.com - The euro trimmed losses against the U.S. dollar on Wednesday, following upbeat U.S. housing data, but the single currency remained under pressure as investors awaited a second day of testimony by Federal Reserve Chairman Ben Bernanke.
EUR/USD pulled back from 1.2216, the session low, to hit 1.2254 during U.S. morning trade, still down 0.32%.
The pair was likely to find near-term support at 1.2174, Monday’s low and resistance at 1.2315, Tuesday’s high.
Concerns over the outlook for the U.S. eased after official data showed that the number of U.S. housing starts rose more-than-expected in June, hitting the highest level since April 2010.
The Commerce Department said U.S. housing starts rose by 6.9% in June to a seasonally adjusted 0.760 million, compared to expectations for a gain of 5.2%.
Housing starts for May were revised up to 0.711 million units, up from a previously reported 0.708 million units.
The report said the number of building permits issued fell 3.7% in June to a 755,000 unit pace.
The data came one day after Fed Chairman Ben Bernanke offered a downbeat view of the U.S. economic outlook in testimony to the Senate, but failed to explicitly indicate if additional stimulus measures are imminent.
Bernanke was due to testify on the economy and monetary policy in front of the House Financial Services Committee on Wednesday.
The euro came under pressure in the European session after German Chancellor Angela Merkel said she was not certain the European project would be successful, but reiterated that she was optimistic in spite of the current difficulties.
Meanwhile, the yield on Spanish 10-year bonds was at 6.93%, nearing the critical 7% threshold widely viewed as unsustainable in the long run, amid fresh concerns over Madrid’s finances.
The euro was hovering close to a three-and-a-half year low against the pound, with EUR/GBP down 0.27% to 0.7835 and was also lower against the yen, with EUR/JPY sliding 0.47% to trade at 96.73.
Also Wednesday, Germany auctioned more than EUR4 billion of two-year government bonds at negative yields for the first time at this type of auction, reflecting sustained investor concerns over the debt crisis in the region.
EUR/USD pulled back from 1.2216, the session low, to hit 1.2254 during U.S. morning trade, still down 0.32%.
The pair was likely to find near-term support at 1.2174, Monday’s low and resistance at 1.2315, Tuesday’s high.
Concerns over the outlook for the U.S. eased after official data showed that the number of U.S. housing starts rose more-than-expected in June, hitting the highest level since April 2010.
The Commerce Department said U.S. housing starts rose by 6.9% in June to a seasonally adjusted 0.760 million, compared to expectations for a gain of 5.2%.
Housing starts for May were revised up to 0.711 million units, up from a previously reported 0.708 million units.
The report said the number of building permits issued fell 3.7% in June to a 755,000 unit pace.
The data came one day after Fed Chairman Ben Bernanke offered a downbeat view of the U.S. economic outlook in testimony to the Senate, but failed to explicitly indicate if additional stimulus measures are imminent.
Bernanke was due to testify on the economy and monetary policy in front of the House Financial Services Committee on Wednesday.
The euro came under pressure in the European session after German Chancellor Angela Merkel said she was not certain the European project would be successful, but reiterated that she was optimistic in spite of the current difficulties.
Meanwhile, the yield on Spanish 10-year bonds was at 6.93%, nearing the critical 7% threshold widely viewed as unsustainable in the long run, amid fresh concerns over Madrid’s finances.
The euro was hovering close to a three-and-a-half year low against the pound, with EUR/GBP down 0.27% to 0.7835 and was also lower against the yen, with EUR/JPY sliding 0.47% to trade at 96.73.
Also Wednesday, Germany auctioned more than EUR4 billion of two-year government bonds at negative yields for the first time at this type of auction, reflecting sustained investor concerns over the debt crisis in the region.