Forexpros – The euro was hovering close to a 16-mounth low against the U.S. dollar on Thursday, after falling sharply in the previous session amid fresh concerns over the debt crisis in the euro zone, while investors eyed an auction of French government debt later in the day.
EUR/USD hit 1.2910 during late Asian trade, the daily low; the pair subsequently consolidated at 1.2915, shedding 0.19%.
The pair was likely to find support at 1.2857, the low of December 29 and a 16-month low and resistance at 1.2998, the high of December 30.
France planned to auction up to EUR8 billion of 10 to 30-year bonds one day after an auction of German 10-year bonds met with subdued investor demand.
France is viewed as being at high risk of losing its triple-A sovereign credit rating in the coming weeks, leaving the euro vulnerable to fresh losses if the auction does not go well.
Elsewhere, concerns over a default by Greece resurfaced after Greek Prime Minister Lucas Papademos warned his country may face economic collapse as soon as March.
The euro was almost unchanged against the pound, with EUR/GBP dipping 0.01% to hit 0.8284.
Also Thursday, the U.S. was to release the ADP report on private sector employment as well as data on initial jobless claims and service sector activity.
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