Investing.com - The euro was steady against the U.S. dollar on Tuesday, trading above the previous day’s 16-month low but gains were limited as worries over the sovereign debt crisis in the single currency bloc continued to weigh on market sentiment.
During European late morning trade, the euro was higher against the U.S. dollar, with EUR/USD adding 0.17% to hit 1.2781.
Market sentiment was buoyed after an upbeat start to earnings season lifted European equities markets and supported the outlook for the U.S. economic recovery.
But the debt crisis in the euro zone remained in focus, as German Chancellor Angela Merkel and International Monetary Fund President Christine Lagarde prepared to meet later in the day, to discuss Greece’s bailout.
The euro ticked higher against the pound, with EUR/GBP adding 0.15% to hit 0.8270.
In the U.K., industry data showed that house showed prices fell at a marginally slower pace in the three months to December, with prices expected to continue falling in the coming months.
A separate report showed that U.K. retail sales jumped in December, but retailers expect another difficult year in 2012.
The single currency was also modestly higher against the safe haven yen, with EUR/JPY rising 0.19% to hit 98.27, after falling to an 11-year low of 97.26 on Monday.
Elsewhere, the euro remained steady against the Swiss franc, with EUR/CHF inching up 0.04% to hit 1.2126.
The euro rose to a three-and-a-half month high against the Swiss franc on Monday, after the resignation of Phillip Hildebrand as chairman of the Swiss National Bank threw doubts over the central bank’s ability to maintain the minimum exchange rate floor of 1.20 per euro.
The euro quickly fell back after the SNB reiterated that it was ready to defend the exchange rate with the “utmost determination.”
Hildebrand’s resignation came in the wake of a controversial currency trade made by his wife, just weeks before the SNB intervened to curb the appreciation of the currency.
In contrast, the euro fell to record lows against the broadly stronger Australian and New Zealand dollars, with EUR/AUD tumbling 0.70% to hit 1.2378 and EUR/NZD dropping 0.78% to hit 1.6086.
Earlier in the day, official data showed that Australian building approvals rose more-than-expected in November, climbing 8.4% after a 10% drop the previous month, surpassing expectations for a 6.6% increase.
In New Zealand, data showed that building consents fell 6.4% in November after a 10.7% increase the previous month.
The euro was also lower against the Canadian dollar, with EUR/CAD shedding 0.48% to trade at 1.3001.
Also Tuesday, investors were keeping a close eye on the borrowing costs of troubled euro zone states Spain and Italy, ahead of government debt auctions later in the week.
The yield on 10-year Italian government bonds lodged above the 7% threshold seen as unsustainable at 7.17%, while the yield on Spanish 10-year bonds was at 5.59%.
During European late morning trade, the euro was higher against the U.S. dollar, with EUR/USD adding 0.17% to hit 1.2781.
Market sentiment was buoyed after an upbeat start to earnings season lifted European equities markets and supported the outlook for the U.S. economic recovery.
But the debt crisis in the euro zone remained in focus, as German Chancellor Angela Merkel and International Monetary Fund President Christine Lagarde prepared to meet later in the day, to discuss Greece’s bailout.
The euro ticked higher against the pound, with EUR/GBP adding 0.15% to hit 0.8270.
In the U.K., industry data showed that house showed prices fell at a marginally slower pace in the three months to December, with prices expected to continue falling in the coming months.
A separate report showed that U.K. retail sales jumped in December, but retailers expect another difficult year in 2012.
The single currency was also modestly higher against the safe haven yen, with EUR/JPY rising 0.19% to hit 98.27, after falling to an 11-year low of 97.26 on Monday.
Elsewhere, the euro remained steady against the Swiss franc, with EUR/CHF inching up 0.04% to hit 1.2126.
The euro rose to a three-and-a-half month high against the Swiss franc on Monday, after the resignation of Phillip Hildebrand as chairman of the Swiss National Bank threw doubts over the central bank’s ability to maintain the minimum exchange rate floor of 1.20 per euro.
The euro quickly fell back after the SNB reiterated that it was ready to defend the exchange rate with the “utmost determination.”
Hildebrand’s resignation came in the wake of a controversial currency trade made by his wife, just weeks before the SNB intervened to curb the appreciation of the currency.
In contrast, the euro fell to record lows against the broadly stronger Australian and New Zealand dollars, with EUR/AUD tumbling 0.70% to hit 1.2378 and EUR/NZD dropping 0.78% to hit 1.6086.
Earlier in the day, official data showed that Australian building approvals rose more-than-expected in November, climbing 8.4% after a 10% drop the previous month, surpassing expectations for a 6.6% increase.
In New Zealand, data showed that building consents fell 6.4% in November after a 10.7% increase the previous month.
The euro was also lower against the Canadian dollar, with EUR/CAD shedding 0.48% to trade at 1.3001.
Also Tuesday, investors were keeping a close eye on the borrowing costs of troubled euro zone states Spain and Italy, ahead of government debt auctions later in the week.
The yield on 10-year Italian government bonds lodged above the 7% threshold seen as unsustainable at 7.17%, while the yield on Spanish 10-year bonds was at 5.59%.