Forexpros – The euro eased against the U.S. dollar on Wednesday, finding support as the European Central Bank bought Spanish and Italian government debt easing pressure on rising borrowing costs.
EUR/USD pulled back from 1.3430, the pair’s lowest since October 10 to hit 1.3473 during European morning trade, still down 0.49%.
The pair was likely to find support at 1.3377, the low of October 10 and resistance at 1.3600, the high of September 30.
The single currency found support as Italian 10-year bond yields fell back to 6.9%, having risen above the 7% threshold which was widely viewed as unsustainable on Tuesday.
Spanish 10-year yields also eased off Tuesday’s three month high.
Later Wednesday, incoming Italian Prime Minister Mario Monti was due to meet with President Giorgio Napolitano to officially accept the post and present his new government.
In Greece, Prime Minister Lucas Papademos was facing a confidence vote in parliament, which will give him a three-month mandate to implement budget measures and ensure a bailout package.
Meanwhile, official data showed that the rate of consumer inflation in the euro zone remained unchanged at 3% in October, in line with expectations.
The euro was almost unchanged against the euro with EUR/GBP slipping 0.20%, to trade at 0.8540.
Later in the day, the U.S. was to release official data on consumer price inflation and industrial production.
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