Investing.com - The euro remained under pressure against its major counterparts on Wednesday, as concerns over the risk of sovereign ratings cuts across the euro zone pushed Italian borrowing costs to euro-era highs.
During European late morning trade, the euro traded close to an 11-month low against the U.S. dollar, with EUR/USD slipping 0.08% to hit 1.3025.
Italy’s Treasury sold the full targeted amount of EUR3 billion of five-year government bonds, at an average yield of 6.47%, a euro era high, after paying 6.29% at a similar auction in November.
Following the auction, the yield on Italian 10-year bonds climbed to 7.17%, a level widely judged to be unsustainable.
Germany auctioned EUR4.18 billion of two-year bonds at euro-era low yields, after an auction of 10-year bonds last month met with extremely weak investor demand.
Sentiment on the single currency has been hard hit in recent days by the view that last week's European Union summit did not result in concrete plans to tackle the debt crisis in the region.
Meanwhile, safe haven demand remained supported after the Federal Reserve warned that market turbulence stemming from the crisis in the euro zone posed a threat to the U.S. economy but stopped short of indicating fresh stimulus measures to shore up growth.
The euro was also lower against the pound, with EUR/GBP shedding 0.16% to hit 0.8408.
In the U.K., official data showed that the number of people claiming unemployment benefits rose less-than-expected in December, advancing by 3,000 after a rise of 2,500 the previous month.
Analysts had expected the number of people claiming unemployment benefits to rise by 16,100 in November.
The report also showed that the U.K. unemployment rate remained unchanged at 8.3%, despite expectations for a rise to 8.4%.
The single currency was weaker against the yen but remained almost unchanged against the Swiss franc, with EUR/JPY slipping 0.10% to hit 101.57 and EUR/CHF inching up 0.02% to hit 1.2330.
Earlier Wednesday, the ZEW institute said that its index of economic expectations in Switzerland deteriorated to the lowest level in three years in December, falling to minus 72.0 from minus 64.3 points last month.
Elsewhere, the euro was mixed to broadly lower against the Canadian, Australian and New Zealand dollars, with EUR/CAD sliding 0.12% to hit 1.3465, EUR/AUD dipping 0.02% to hit 1.3014 and EUR/NZD adding 0.21% to hit 1.7265.
The Westpac Banking Corporation said earlier that its index of Australian consumer sentiment fell to its lowest level since August last month, tumbling 8.3% after a 6.3% increase in October.
Also Wednesday, official data showed that industrial production in the euro zone declined unexpectedly in October, falling for the second consecutive month.
During European late morning trade, the euro traded close to an 11-month low against the U.S. dollar, with EUR/USD slipping 0.08% to hit 1.3025.
Italy’s Treasury sold the full targeted amount of EUR3 billion of five-year government bonds, at an average yield of 6.47%, a euro era high, after paying 6.29% at a similar auction in November.
Following the auction, the yield on Italian 10-year bonds climbed to 7.17%, a level widely judged to be unsustainable.
Germany auctioned EUR4.18 billion of two-year bonds at euro-era low yields, after an auction of 10-year bonds last month met with extremely weak investor demand.
Sentiment on the single currency has been hard hit in recent days by the view that last week's European Union summit did not result in concrete plans to tackle the debt crisis in the region.
Meanwhile, safe haven demand remained supported after the Federal Reserve warned that market turbulence stemming from the crisis in the euro zone posed a threat to the U.S. economy but stopped short of indicating fresh stimulus measures to shore up growth.
The euro was also lower against the pound, with EUR/GBP shedding 0.16% to hit 0.8408.
In the U.K., official data showed that the number of people claiming unemployment benefits rose less-than-expected in December, advancing by 3,000 after a rise of 2,500 the previous month.
Analysts had expected the number of people claiming unemployment benefits to rise by 16,100 in November.
The report also showed that the U.K. unemployment rate remained unchanged at 8.3%, despite expectations for a rise to 8.4%.
The single currency was weaker against the yen but remained almost unchanged against the Swiss franc, with EUR/JPY slipping 0.10% to hit 101.57 and EUR/CHF inching up 0.02% to hit 1.2330.
Earlier Wednesday, the ZEW institute said that its index of economic expectations in Switzerland deteriorated to the lowest level in three years in December, falling to minus 72.0 from minus 64.3 points last month.
Elsewhere, the euro was mixed to broadly lower against the Canadian, Australian and New Zealand dollars, with EUR/CAD sliding 0.12% to hit 1.3465, EUR/AUD dipping 0.02% to hit 1.3014 and EUR/NZD adding 0.21% to hit 1.7265.
The Westpac Banking Corporation said earlier that its index of Australian consumer sentiment fell to its lowest level since August last month, tumbling 8.3% after a 6.3% increase in October.
Also Wednesday, official data showed that industrial production in the euro zone declined unexpectedly in October, falling for the second consecutive month.