Investing.com - The euro remained broadly lower against its major counterparts on Thursday, as a combination of worries over the region’s debt crisis and the outlook for growth soured investor sentiment.
During European late morning trade, the euro was hovering just above an 11-month low against the U.S. dollar, with EUR/USD edging up 0.11% to hit 1.2997.
The shared currency found support after an auction of Spanish government debt met with stronger-than-expected investor demand.
Spain’s Treasury sold EUR6 billion of medium-and-long-term bonds earlier in the day, far surpassing a target of EUR3.5 billion.
The country sold EUR2.5 billion of five-year bonds at an average yield of 4.02%, down sharply from 5.27% at a similar auction last month. Spain also auction EUR1.4 billion in ten-year bonds at a yield of 5.54%, compared to 6.97% at a November bond sale.
Bu the euro remained under pressure after the European Central Bank’s monthly report said the debt crisis in the region still posed a substantial threat to the economic outlook.
The report came after data showing that manufacturing activity in the euro zone rose unexpectedly in December, but remained in contraction territory for the fourth consecutive month.
A separate report showed that consumer price inflation in the euro zone remained unchanged at an annualized rate of 3% in December, in line with expectations.
The euro was lower against the pound, with EUR/GBP slipping 0.08% to hit 0.8385.
In the U.K., official data showed that retail sales fell more-than-expected in November, as consumers reined in spending.
The single currency dipped against the yen but declined sharply against the Swiss franc, with EUR/JPY losing 0.07% to hit 101.28 and EUR/CHF tumbling 0.87% to hit 1.2270.
Earlier Thursday, the Swiss National Bank kept its minimum exchange rate target of 1.20 per euro unchanged and reiterated its pledge to defend the level with the "utmost determination."
The central bank warned of a highly uncertain global economic outlook, saying that a further escalation of the debt crisis in the euro zone could not be ruled out. The SNB also kept its key interest rate close to zero.
In addition, official data showed that industrial production in Switzerland declined more-than-expected in the third quarter.
Elsewhere, the euro was mixed to broadly lower against the Canadian, Australian and New Zealand dollars, with EUR/CAD inching down 0.03% to hit 1.3490, EUR/AUD dipping 0.01% to hit 1.3100 and EUR/NZD adding 0.12% to hit 1.7316.
In Australia, a report earlier showed that inflation expectations slightly eased in December, while a separate report showed that new motor vehicle sales declined in November.
Later Thursday, the U.S. was to produce its weekly report on initial jobless claims, as well as government data on producer price inflation and manufacturing activity in Philadelphia and New York state.
During European late morning trade, the euro was hovering just above an 11-month low against the U.S. dollar, with EUR/USD edging up 0.11% to hit 1.2997.
The shared currency found support after an auction of Spanish government debt met with stronger-than-expected investor demand.
Spain’s Treasury sold EUR6 billion of medium-and-long-term bonds earlier in the day, far surpassing a target of EUR3.5 billion.
The country sold EUR2.5 billion of five-year bonds at an average yield of 4.02%, down sharply from 5.27% at a similar auction last month. Spain also auction EUR1.4 billion in ten-year bonds at a yield of 5.54%, compared to 6.97% at a November bond sale.
Bu the euro remained under pressure after the European Central Bank’s monthly report said the debt crisis in the region still posed a substantial threat to the economic outlook.
The report came after data showing that manufacturing activity in the euro zone rose unexpectedly in December, but remained in contraction territory for the fourth consecutive month.
A separate report showed that consumer price inflation in the euro zone remained unchanged at an annualized rate of 3% in December, in line with expectations.
The euro was lower against the pound, with EUR/GBP slipping 0.08% to hit 0.8385.
In the U.K., official data showed that retail sales fell more-than-expected in November, as consumers reined in spending.
The single currency dipped against the yen but declined sharply against the Swiss franc, with EUR/JPY losing 0.07% to hit 101.28 and EUR/CHF tumbling 0.87% to hit 1.2270.
Earlier Thursday, the Swiss National Bank kept its minimum exchange rate target of 1.20 per euro unchanged and reiterated its pledge to defend the level with the "utmost determination."
The central bank warned of a highly uncertain global economic outlook, saying that a further escalation of the debt crisis in the euro zone could not be ruled out. The SNB also kept its key interest rate close to zero.
In addition, official data showed that industrial production in Switzerland declined more-than-expected in the third quarter.
Elsewhere, the euro was mixed to broadly lower against the Canadian, Australian and New Zealand dollars, with EUR/CAD inching down 0.03% to hit 1.3490, EUR/AUD dipping 0.01% to hit 1.3100 and EUR/NZD adding 0.12% to hit 1.7316.
In Australia, a report earlier showed that inflation expectations slightly eased in December, while a separate report showed that new motor vehicle sales declined in November.
Later Thursday, the U.S. was to produce its weekly report on initial jobless claims, as well as government data on producer price inflation and manufacturing activity in Philadelphia and New York state.