Forexpros – The euro clawed back from a five-week low against the U.S. dollar on Thursday, but the single currency remained vulnerable after French and Spanish bond auctions later in the day.
EUR/USD pulled away from 1.3422, the pair’s lowest since October 10, to hit 1.3490 during late Asian trade, easing up 0.21%.
The pair was likely to find support at 1.3360, the low of October 10 and resistance at 1.3640, Tuesday’s high.
Later in the day, Spain was due to auction up to EUR4 billion of 10-year bonds and Madrid was expected to face its highest borrowing cost since the inception of the single currency.
Meanwhile, France was to auction up to EUR7 billion in government bonds after borrowing costs rose to a euro-era high on Wednesday as European Central Bank buying of Italian and Spanish debt failed to reassure markets.
Market sentiment was also hit after ratings agency Fitch warned about the potential adverse impact of euro zone’s debt crisis on the U.S. banking sector shortly after Moody’s downgraded the ratings of 12 German public-sector banks.
The euro was also slightly higher against the pound, with EUR/GBP easing up 0.16% to hit 0.8568.
Also Thursday, the U.S. was to release official data on initial jobless claims, building permits and housing starts and a report on manufacturing activity in the Philadelphia region.
Forexpros
