Investing.com - The euro was broadly higher against its major counterparts on Thursday, as risk appetite was boosted after auctions of French and Spanish government debt met with better-than-expected investor demand.
During European late morning trade, the euro was higher against the U.S. dollar, with EUR/USD rising 0.34% to hit 1.3491.
Spain’s Treasury auctioned the full targeted amount of EUR3.75 billion of government bonds, while France auctioned EUR4.5 billion of debt.
France sold EUR1.57 billion of 10-year bonds at an average yield of 3.18%, down from 3.22% at a similar auction last month. The average yield on Spain’s five-year bonds was 5.54%, compared with 4.84% in early November.
The auctions were being seen as a major test of investor confidence, coming one day after six major central banks, including the Federal Reserve and the European Central Bank cut the cost of emergency dollar funding for European banks in a coordinated action.
Market sentiment was dented earlier after ECB President Mario Draghi said that downside risks to Europe’s economic outlook have increased.
The euro was slightly higher against the pound, with EUR/GBP easing up 0.11% to hit 0.8574.
A report earlier showed that manufacturing activity in the U.K. fell less-than-expected in November, but remained in contraction territory for the second consecutive month.
The single currency was also higher against the yen but dipped against the Swiss franc, with EUR/JPY rising 0.42% to hit 104.81 and EUR/CHF slipping 0.08% to hit 1.2267.
In Switzerland, official data showed that the economy expanded in line with expectations in the third quarter, with gross domestic product growth of 0.2%, bringing the annualized rate of growth to 1.3%.
A separate report showed that Swiss manufacturing activity contracted more-than-expected in November, dropping for the third consecutive month.
Elsewhere, Japanese Finance Minister Jun Azumi said earlier that the government will compile a fourth spending package this fiscal year to help companies cope with the strong yen, but did not provide details on the funding.
Elsewhere, the euro was steady against the Canadian, Australian and New Zealand dollars, with EUR/CAD rising 0.46% to hit 1.3747, EUR/AUD surging 0.92% to hit 1.3197 and EUR/NZD advancing 0.59% to hit 1.7488.
Earlier in the session, government data showed that retail sales in Australia rose less-than-expected in September, while building approvals dropped unexpectedly in October.
Also Thursday, official data showed that Chinese manufacturing activity contracted in November for the first time in nearly three years as export orders fell sharply.
Later in the day, the U.S. was to release its weekly report on initial jobless claims, while the Institute of Supply Management was to release data on manufacturing activity.
During European late morning trade, the euro was higher against the U.S. dollar, with EUR/USD rising 0.34% to hit 1.3491.
Spain’s Treasury auctioned the full targeted amount of EUR3.75 billion of government bonds, while France auctioned EUR4.5 billion of debt.
France sold EUR1.57 billion of 10-year bonds at an average yield of 3.18%, down from 3.22% at a similar auction last month. The average yield on Spain’s five-year bonds was 5.54%, compared with 4.84% in early November.
The auctions were being seen as a major test of investor confidence, coming one day after six major central banks, including the Federal Reserve and the European Central Bank cut the cost of emergency dollar funding for European banks in a coordinated action.
Market sentiment was dented earlier after ECB President Mario Draghi said that downside risks to Europe’s economic outlook have increased.
The euro was slightly higher against the pound, with EUR/GBP easing up 0.11% to hit 0.8574.
A report earlier showed that manufacturing activity in the U.K. fell less-than-expected in November, but remained in contraction territory for the second consecutive month.
The single currency was also higher against the yen but dipped against the Swiss franc, with EUR/JPY rising 0.42% to hit 104.81 and EUR/CHF slipping 0.08% to hit 1.2267.
In Switzerland, official data showed that the economy expanded in line with expectations in the third quarter, with gross domestic product growth of 0.2%, bringing the annualized rate of growth to 1.3%.
A separate report showed that Swiss manufacturing activity contracted more-than-expected in November, dropping for the third consecutive month.
Elsewhere, Japanese Finance Minister Jun Azumi said earlier that the government will compile a fourth spending package this fiscal year to help companies cope with the strong yen, but did not provide details on the funding.
Elsewhere, the euro was steady against the Canadian, Australian and New Zealand dollars, with EUR/CAD rising 0.46% to hit 1.3747, EUR/AUD surging 0.92% to hit 1.3197 and EUR/NZD advancing 0.59% to hit 1.7488.
Earlier in the session, government data showed that retail sales in Australia rose less-than-expected in September, while building approvals dropped unexpectedly in October.
Also Thursday, official data showed that Chinese manufacturing activity contracted in November for the first time in nearly three years as export orders fell sharply.
Later in the day, the U.S. was to release its weekly report on initial jobless claims, while the Institute of Supply Management was to release data on manufacturing activity.