Investing.com - The euro slipped lower against the U.S. dollar on Thursday, as markets awaited the results of a critical Spanish bond auction later in the day, amid growing concerns over the health of the country’s banking sector.
EUR/USD hit 1.3107 during late Asian trade, the session low; the pair subsequently consolidated at 1.3117, dipping 0.04%.
The pair was likely to find support at 1.3032, the low of April 9 and resistance at 1.3171, Tuesday’s high.
Spain was due to auction up to EUR2.5 billion of government bonds later Thursday, after the yield on the country’s 10-year bonds rose above 6% earlier in the week, fuelling fears that the country may be the next in the euro zone to require a bailout.
On Tuesday, an auction of short-term Spanish government debt raised the full targeted amount of EUR3 billion, but the country’s borrowing costs almost doubled.
Meanwhile, worries over Spain’s troubled banking sector mounted on Wednesday, after the country’s central bank reported that the amount of bad loans at domestic banks rose to an 18-year high in February.
The euro was hovering close to a 19-month low against the stronger pound, with EUR/GBP dipping 0.07% to hit 0.8183, but pushed higher against the yen, with EUR/JPY rising 0.31% to hit 106.95.
Also Thursday, the U.S. was to release official data on unemployment claims, followed by industry data on existing home sales and a report on manufacturing activity in the Philadelphia area.
EUR/USD hit 1.3107 during late Asian trade, the session low; the pair subsequently consolidated at 1.3117, dipping 0.04%.
The pair was likely to find support at 1.3032, the low of April 9 and resistance at 1.3171, Tuesday’s high.
Spain was due to auction up to EUR2.5 billion of government bonds later Thursday, after the yield on the country’s 10-year bonds rose above 6% earlier in the week, fuelling fears that the country may be the next in the euro zone to require a bailout.
On Tuesday, an auction of short-term Spanish government debt raised the full targeted amount of EUR3 billion, but the country’s borrowing costs almost doubled.
Meanwhile, worries over Spain’s troubled banking sector mounted on Wednesday, after the country’s central bank reported that the amount of bad loans at domestic banks rose to an 18-year high in February.
The euro was hovering close to a 19-month low against the stronger pound, with EUR/GBP dipping 0.07% to hit 0.8183, but pushed higher against the yen, with EUR/JPY rising 0.31% to hit 106.95.
Also Thursday, the U.S. was to release official data on unemployment claims, followed by industry data on existing home sales and a report on manufacturing activity in the Philadelphia area.