Forexpros – The euro ticked up and down between small gains and losses against the U.S. dollar on Wednesday, as concerns over high Spanish borrowing costs and uncertainty ahead of a closely watched Greek election weighed.
EUR/USD hit 1.2474 during late Asian trade, the session low; the pair subsequently consolidated at 1.2511, inching up 0.06%.
The pair was likely to find support at 1.2409, the low of June 6 and resistance at 1.2624, the high of June 7.
Fears that a bailout for Spain’s banking sector could add to the country’s fiscal problems pushed the yield on Spanish 10-year bonds to a euro-era high of 6.82% on Tuesday, just below the critical 7% threshold which prompted bailouts in Greece, Ireland and Portugal.
Meanwhile, investors were focused on the outcome of Sunday’s general election in Greece, where pro and anti-bailout parties are neck-and-neck in the polls, fuelling fears that the country could be forced to exit the euro area.
The euro pushed higher against the pound and the yen, with EUR/GBP easing up 0.11% to hit 0.8038 and EUR/JPY rising 0.21% to hit 99.62.
Later in the day, Italy was set to auction as much as EUR4.5 billion of government bonds. The euro zone was to release official data on industrial production, while Germany was to hold an auction of 10-year government bonds.
In addition, the U.S. was to release official data on retail sales and producer price inflation.
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