Forexpros – The euro eased off a seven-week low against the U.S. dollar on Thursday, but the single currency remained vulnerable after a poor German bond auction added to fears that the region’s debt crisis is spreading to core economies.
EUR/USD hit 1.3394 during late Asian trade, the daily high; the pair subsequently consolidated at 1.3383, gaining 0.31%.
The pair was likely to find support at 1.3319, Wednesday’s low and a seven-week low and resistance at 1.3530, Wednesday’s high.
Germany failed to reach its maximum sales target of EUR6 billion on Wednesday, auctioning just EUR3.64 billion of 10-year government bonds in its least successful debt sale since the launch of the single currency.
The poorly received auction was due in some part to low bond yields but sparked concerns that the debt crisis may have started affecting the euro zone’s largest economy.
Meanwhile, ratings agency Fitch warned that France could lose its triple-A credit rating if European Union leaders fail to take action to prevent the crisis from worsening.
The euro was also higher against the pound, with EUR/GBP rising 0.14% to hit 0.8605.
Later in the day, the Ifo Institute for Economic Research was to publish a report on German business climate. Markets in the U.S. were to remain closed for Thanksgiving.
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