Investing.com - The euro extended gains against the U.S. dollar on Wednesday, advancing to a four-day high, but sentiment on the single currency remained fragile amid persistent concerns over worsening debt problems in the peripheral euro zone.
EUR/USD hit 1.3157 during European afternoon trade, the pair’s highest since April 5; the pair subsequently consolidated at 1.3141, gaining 0.46%.
The pair was likely to find support at 1.3065, the session low and resistance at 1.3186, the high of March 18.
Risk appetite was supported after the first quarter earnings season kicked off with a surprise profit from aluminum producer Alcoa.
The euro remained vulnerable as the yield on Spanish 10-year government bonds hovered close to four month high of 6%, fuelling concerns that the effects of the European Central Bank’s liquidity operation is wearing off.
Spanish Prime Minister Mariano Rajoy was to make a speech on the country’s recent austerity budget later in the day, as investors remained fearful that harsh deficit reduction measures would exacerbate a looming recession and the country will need a bailout.
Meanwhile, Italy saw its one-year borrowing costs rise for the first time since November earlier, in a poorly received government bond auction.
The euro eased off a three-month low against the pound, with EUR/GBP rising 0.15% to hit 0.8260 and posted strong gains against the yen, with EUR/JPY advancing 0.74% to hit 106.31.
Later in the day, the U.S. was to release official data on import prices and crude oil stockpiles, as well as a report on the federal budget balance. The Federal Reserve was also to publish its Beige Book.
EUR/USD hit 1.3157 during European afternoon trade, the pair’s highest since April 5; the pair subsequently consolidated at 1.3141, gaining 0.46%.
The pair was likely to find support at 1.3065, the session low and resistance at 1.3186, the high of March 18.
Risk appetite was supported after the first quarter earnings season kicked off with a surprise profit from aluminum producer Alcoa.
The euro remained vulnerable as the yield on Spanish 10-year government bonds hovered close to four month high of 6%, fuelling concerns that the effects of the European Central Bank’s liquidity operation is wearing off.
Spanish Prime Minister Mariano Rajoy was to make a speech on the country’s recent austerity budget later in the day, as investors remained fearful that harsh deficit reduction measures would exacerbate a looming recession and the country will need a bailout.
Meanwhile, Italy saw its one-year borrowing costs rise for the first time since November earlier, in a poorly received government bond auction.
The euro eased off a three-month low against the pound, with EUR/GBP rising 0.15% to hit 0.8260 and posted strong gains against the yen, with EUR/JPY advancing 0.74% to hit 106.31.
Later in the day, the U.S. was to release official data on import prices and crude oil stockpiles, as well as a report on the federal budget balance. The Federal Reserve was also to publish its Beige Book.