Forexpros – The euro was steady against the U.S. dollar on Thursday, hovering just above an 11-month low hit the previous day, as concerns over possible credit-rating downgrades for euro zone countries weighed.
EUR/USD hit 1.3001 during late Asian trade, the daily high; the pair subsequently consolidated at 1.2997, easing up 0.11%.
The pair was likely to find support at 1.2945, Wednesday’s low and an 11-month low and resistance at 1.3064, Wednesday’s high.
Sentiment on the single currency has been undermined this week, after last Friday’s European Union summit failed to result in any decisive measures to tackle the debt crisis in the region, sparking fears over mass ratings cuts across the euro zone.
On Wednesday, Italy was forced to pay euro-era high yields at an auction of five-year bonds.
Meanwhile, investor attention turned to an auction of Spanish government debt later in the day, as well as a speech by European Central Bank President Mario Draghi.
The euro also edged higher against the pound, with EUR/GBP easing up 0.10% to hit 0.8402.
Also Thursday, the euro zone was to publish preliminary data on manufacturing and service sector activity in addition to official data on consumer price inflation and employment change.
The U.S. was to produce its weekly report on initial jobless claims, as well as government data on producer price inflation and manufacturing activity in Philadelphia and New York state.
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