Investing.com - The euro weakened broadly against its major counterparts on Wednesday, nearing a decade low against the yen and a record low against the Australian dollar following lower than average demand at an auction of German 10-year government debt.
During European late morning trade, the euro was down against the U.S. dollar, with EUR/USD shedding 0.52% to hit 1.2980.
Germany sold EUR4.06 billion of 10-year bonds at an average yield of 1.93%, compared with 1.98% at November's launch of the January 2022 bond, which was one of the worst German debt auctions since the inception of the single currency.
The auction came after data showed that service sector activity in the euro zone contracted for the fourth consecutive month in December, albeit at a slower pace than initially estimated.
A separate report showed that the rate of consumer price inflation in the euro zone eased to 2.8% from 3% in December, supporting the view that the European Central Bank could cut rates further to bolster growth.
The euro was hovering close to a one-year low against the pound, with EUR/GBP sliding 0.22% to hit 0.8320.
In the U.K. earlier, a report showed that construction sector activity unexpectedly improved in December, extending the period of sustained expansion to 12 months.
Against the yen, the single currency dropped 0.56% to trade at 99.56, after falling to as low as 99.35 in holiday-thinned trade on Monday, the lowest level since December 2000.
In contrast, the euro edged higher against the Swiss franc, with EUR/CHF rising 0.22% to hit 1.2191.
Elsewhere, the euro remained close to an all-time low against the Australian dollar, with EUR/AUD inching up 0.02% to hit 1.2577. Meanwhile, EUR/CAD slid 0.26% to trade at 1.3167 while EUR/NZD lost 0.22% to hit 1.6492.
Later Wednesday, the U.S. was to release official data on factory orders.
During European late morning trade, the euro was down against the U.S. dollar, with EUR/USD shedding 0.52% to hit 1.2980.
Germany sold EUR4.06 billion of 10-year bonds at an average yield of 1.93%, compared with 1.98% at November's launch of the January 2022 bond, which was one of the worst German debt auctions since the inception of the single currency.
The auction came after data showed that service sector activity in the euro zone contracted for the fourth consecutive month in December, albeit at a slower pace than initially estimated.
A separate report showed that the rate of consumer price inflation in the euro zone eased to 2.8% from 3% in December, supporting the view that the European Central Bank could cut rates further to bolster growth.
The euro was hovering close to a one-year low against the pound, with EUR/GBP sliding 0.22% to hit 0.8320.
In the U.K. earlier, a report showed that construction sector activity unexpectedly improved in December, extending the period of sustained expansion to 12 months.
Against the yen, the single currency dropped 0.56% to trade at 99.56, after falling to as low as 99.35 in holiday-thinned trade on Monday, the lowest level since December 2000.
In contrast, the euro edged higher against the Swiss franc, with EUR/CHF rising 0.22% to hit 1.2191.
Elsewhere, the euro remained close to an all-time low against the Australian dollar, with EUR/AUD inching up 0.02% to hit 1.2577. Meanwhile, EUR/CAD slid 0.26% to trade at 1.3167 while EUR/NZD lost 0.22% to hit 1.6492.
Later Wednesday, the U.S. was to release official data on factory orders.