Forexpros – The euro traded lower against the dollar on Thursday as investors sold the pair and jumped to the sidelines in anticipation of Spain’s 10-year bond auction that will take place in Europe later.
In Asian trading on Thursday, EUR/USD was trading at 1.3118, down 0.04%, up from a session low of 1.3113 and off from a high of 1.3125.
The pair was likely to find support at 1.2996, the low of April 16, and resistance at 1.3368, the high of April 3.
Earlier in the week, the Spanish government sold at auction 12-month and 18-month debt with no major difficulties, and while yields were high at 2.623%, the country did raise over EUR3 billion, above target.
However, the closely-watched 2-year and 10-year auction on Thursday will shed light on market confidence in Spain’s ability to tackle deficits amid a recession and steer its economy to better days.
Meanwhile, Spain’s central bank reported that the level of bad loans held by domestic banks rose to an 18-year high on February.
The euro, meanwhile, was down slightly against the pound and inching up against the yen, with EUR/GBP trading down 0.02% at 0.8188 and EUR/JPY up 0.01% and trading at 106.94.
Later Thursday, all eyes will be on Spain and the results of its bond auction.
In Germany, the German Ifo Business Climate Index will be released, rating the country’s business climate and expectations for the next six months.
German producer price data will also be released.
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