Forexpros – The euro remained lower against the U.S. dollar on Tuesday, as concerns over rising Spanish borrowing costs and worries over the outlook for the global economy weighed.

EUR/USD hit 1.3060 during European afternoon trade, the session low; the pair subsequently consolidated at 1.3076, slipping 0.22%.

The pair was likely to find support at 1.3032, Monday’s low and an almost one-month low and short-term resistance at 1.3163, the high of April 5.

Concerns over high Spanish borrowing costs intensified as the yield on 10-year government bonds ticked up to 5.9% from 5.8% earlier, amid fears that the country will be the next in the euro zone to require a bailout.

The increase came in spite of reassurances from Spanish Prime Minister Mariano Rajoy earlier that the country will cut its budget deficit to 3% of gross domestic product in 2013.

Sentiment on the single currency was also hit following a report showing that investor sentiment in the euro zone dropped this month, after three successive monthly increases.

Market research group Sentix said its index of investor confidence declined by 6.5 points to minus 14.7 in April from March’s reading of minus 8.2.

Analysts had expected the index to improve modestly by 0.1 points to minus 8.1 in April.

Meanwhile, Friday’s weaker-than-forecast U.S. employment data continued to cast doubts over the strength of the country’s economic recovery.

The euro was fractionally higher against the pound, with EUR/GBP inching up 0.07% to hit 0.8253, but remained down against the broadly firmer yen, with EUR/JPY shedding 0.69% to hit 106.05.

Also Tuesday, official data showed that French industrial production rose by 0.3% in February, slightly more than expectations for a 0.2% increase, easing concerns over the economic outlook for the euro zone’s second largest economy.

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