Investing.com – The euro remained lower against the U.S. dollar on Thursday, as investors looked ahead to a press conference by European Central Bank head Mario Draghi amid concerns over higher borrowing costs among peripheral euro zone nations, particularly Spain.
EUR/USD hit 1.3120 during European afternoon trade, the session low; the pair subsequently consolidated at 1.3122, shedding 0.27%.
The pair was likely to find support at 1.3057, the low of April 18 and short-term resistance at 1.3158, the session high.
Spain sold the full target amount of EUR2.5 billion of government bonds in its first debt sale since being downgraded by Standard & Poor’s, but the yield on the country’s five-year bonds rose to 4.96% from 3.69%, while the yield on three-year bonds climbed to 4.03% from 2.61%.
Market participants were looking ahead to the ECB press conference, amid pressure on policymakers to resume the bank’s bond purchase program in order to ease pressure on peripheral borrowing costs.
Earlier in the day, the ECB announced that it was leaving its benchmark interest rate unchanged at 1%, in a widely expected decision.
The euro was hovering close to a 22-month low against the pound, with EUR/GBP dipping 0.07% to hit 0.8116 but edged higher against the yen, with EUR/JPY inching up 0.03% to hit 105.48.
Also Thursday, the U.S. was to produce government data on unemployment claims, as well as preliminary data on nonfarm productivity and unit labor costs. In addition, the Institute of Supply Management was to produce a report on U.S. service sector growth.
EUR/USD hit 1.3120 during European afternoon trade, the session low; the pair subsequently consolidated at 1.3122, shedding 0.27%.
The pair was likely to find support at 1.3057, the low of April 18 and short-term resistance at 1.3158, the session high.
Spain sold the full target amount of EUR2.5 billion of government bonds in its first debt sale since being downgraded by Standard & Poor’s, but the yield on the country’s five-year bonds rose to 4.96% from 3.69%, while the yield on three-year bonds climbed to 4.03% from 2.61%.
Market participants were looking ahead to the ECB press conference, amid pressure on policymakers to resume the bank’s bond purchase program in order to ease pressure on peripheral borrowing costs.
Earlier in the day, the ECB announced that it was leaving its benchmark interest rate unchanged at 1%, in a widely expected decision.
The euro was hovering close to a 22-month low against the pound, with EUR/GBP dipping 0.07% to hit 0.8116 but edged higher against the yen, with EUR/JPY inching up 0.03% to hit 105.48.
Also Thursday, the U.S. was to produce government data on unemployment claims, as well as preliminary data on nonfarm productivity and unit labor costs. In addition, the Institute of Supply Management was to produce a report on U.S. service sector growth.