Investing.com - The euro remained under pressure against its global counterparts on Tuesday, despite a moderately successful auction of Spanish government debt and some upbeat euro zone economic data as concerns over the region's debt crisis weighed.
During European late morning trade, the euro edged higher against the U.S. dollar, with EUR/USD inching up 0.09% to hit 1.3153.
A closely watched auction of Spanish short-term government bonds saw borrowing costs almost double, but the country raised the full targeted amount of EUR3 billion.
Spain’s Treasury sold EUR2.09 billion worth of 12-month government bonds at an average yield of 2.62%, up from 1.41% at a previous auction, and EUR1.09 billion of 18-month bills at an average yield of 2.93%, up from 1.71%.
But investors remained jittery as concerns mounted that Spain’s government will not be able to meet deficit reduction targets in the face of a looming recession.
Meanwhile, official data showed that the rate of consumer price inflation in the single currency bloc was 2.7% in March, up from a preliminary estimate of 2.6% and unchanged from February.
Month-on-month, CPI rose 1.3%, above expectations for a 1.2% increase after rising by 0.5% in February.
A separate report showed that German economic sentiment improved unexpectedly in April, rising for the fifth consecutive month.
The ZEW Centre for Economic Research said that its index of German economic sentiment increased to 23.4 in April from the previous month’s reading of 22.3. Analysts had expected the index to decline to 20.0.
But the single currency was hovering close to a 19-month trough against sterling, with EUR/GBP shedding 0.30% to hit 0.8240.
The pound was boosted as investors trimmed back expectations for more easing from the Bank of England after official data showed that consumer prices ticked up last month.
The U.K. Office for National Statistics said CPI rose to 3.5% year-on-year in March, in line with expectations after increasing 3.4% the previous month.
The euro was higher against the yen, with EUR/JPY rising 0.31% to hit 105.98.
Earlier Tuesday, Japan pledged to provide USD60 billion to the International Monetary Fund’s effort to expand its lending resources and shield the global economy against the effects of the ongoing debt crisis in the euro zone.
The euro was little changed against the Swiss franc, with EUR/CHF dipping 0.03% to hit 1.2015.
The shared currency was broadly lower against the Canadian, Australian and New Zealand dollars, with EUR/CAD sliding 0.21% to hit 1.3103, EUR/AUD slipping 0.09% to hit 1.2677 and EUR/NZD easing up 0.12% to hit 1.6043.
The Australian dollar came under pressure earlier after the minutes of the Reserve Bank of Australia’s April meeting indicated that policymakers may cut interest rates next month if first quarter inflation figures show that the rate of economic growth is moderating.
Later in the day, the U.S. was to produce government data on building permits, housing starts and industrial production.
During European late morning trade, the euro edged higher against the U.S. dollar, with EUR/USD inching up 0.09% to hit 1.3153.
A closely watched auction of Spanish short-term government bonds saw borrowing costs almost double, but the country raised the full targeted amount of EUR3 billion.
Spain’s Treasury sold EUR2.09 billion worth of 12-month government bonds at an average yield of 2.62%, up from 1.41% at a previous auction, and EUR1.09 billion of 18-month bills at an average yield of 2.93%, up from 1.71%.
But investors remained jittery as concerns mounted that Spain’s government will not be able to meet deficit reduction targets in the face of a looming recession.
Meanwhile, official data showed that the rate of consumer price inflation in the single currency bloc was 2.7% in March, up from a preliminary estimate of 2.6% and unchanged from February.
Month-on-month, CPI rose 1.3%, above expectations for a 1.2% increase after rising by 0.5% in February.
A separate report showed that German economic sentiment improved unexpectedly in April, rising for the fifth consecutive month.
The ZEW Centre for Economic Research said that its index of German economic sentiment increased to 23.4 in April from the previous month’s reading of 22.3. Analysts had expected the index to decline to 20.0.
But the single currency was hovering close to a 19-month trough against sterling, with EUR/GBP shedding 0.30% to hit 0.8240.
The pound was boosted as investors trimmed back expectations for more easing from the Bank of England after official data showed that consumer prices ticked up last month.
The U.K. Office for National Statistics said CPI rose to 3.5% year-on-year in March, in line with expectations after increasing 3.4% the previous month.
The euro was higher against the yen, with EUR/JPY rising 0.31% to hit 105.98.
Earlier Tuesday, Japan pledged to provide USD60 billion to the International Monetary Fund’s effort to expand its lending resources and shield the global economy against the effects of the ongoing debt crisis in the euro zone.
The euro was little changed against the Swiss franc, with EUR/CHF dipping 0.03% to hit 1.2015.
The shared currency was broadly lower against the Canadian, Australian and New Zealand dollars, with EUR/CAD sliding 0.21% to hit 1.3103, EUR/AUD slipping 0.09% to hit 1.2677 and EUR/NZD easing up 0.12% to hit 1.6043.
The Australian dollar came under pressure earlier after the minutes of the Reserve Bank of Australia’s April meeting indicated that policymakers may cut interest rates next month if first quarter inflation figures show that the rate of economic growth is moderating.
Later in the day, the U.S. was to produce government data on building permits, housing starts and industrial production.