Investing.com - The euro traded close to an eleven-month low against the U.S. dollar on Wednesday and was mixed against its other major counterparts, as markets were jittery despite a well-received Italian debt sale while investors eyed a second auction scheduled on Thursday.
During European early afternoon trade, the euro was flat against the U.S. dollar, with EUR/USD hitting 1.3072.
Trading volumes remained low seeing as many traders closed books to lock in profit before the end of the year, reducing liquidity in the market and increasing volatility.
Italy’s Treasury sold EUR9 billion euros of six-month bills, at an average yield of 3.25%, down from 6.50% in a previous auction in November. The country also sold EUR1.73 of two-year zero coupons at 5%.
Following the auction, the yield on Italy’s 10-year bonds traded at 6.76%, slightly below the 7% threshold widely seen as unsustainable.
Despite the upbeat results, Thursday’s sale of EUR8.5 billion of long-term Italian debt maturing between 2014 and 2022 was seen as a bigger test of market confidence in the country’s sovereign debt.
The euro was moderately higher against the pound, also trading close to an eleven-month trough with EUR/GBP up 0.02% to hit 0.8342.
The single currency was lower against the yen and the Swiss franc, with EUR/JPY retreating 0.19% to hit 101.58 and EUR/CHF slipping 0.13% to hit 1.2196.
Data showed earlier that Switzerland’s leading economic barometer declined significantly more-than-expected in December, falling to a new low for the second consecutive month.
In Japan, preliminary data showed that industrial production fell more-than-expected in November, tumbling 2.6%, while a separate report showed that retail sales declined more-than-expected in November, falling 2.3%.
Also Wednesday, Japan’s government reiterated its will to intervene in the foreign exchange market in order to curb the appreciation of the yen when necessary.
Elsewhere, the euro was lower against the Canadian Australian and New Zealand dollars, with EUR/CAD declining 0.19% to hit 1.3289, EUR/AUD falling 0.28% to hit 1.2833 and EUR/NZD retreating 0.40% to hit 1.6842.
During European early afternoon trade, the euro was flat against the U.S. dollar, with EUR/USD hitting 1.3072.
Trading volumes remained low seeing as many traders closed books to lock in profit before the end of the year, reducing liquidity in the market and increasing volatility.
Italy’s Treasury sold EUR9 billion euros of six-month bills, at an average yield of 3.25%, down from 6.50% in a previous auction in November. The country also sold EUR1.73 of two-year zero coupons at 5%.
Following the auction, the yield on Italy’s 10-year bonds traded at 6.76%, slightly below the 7% threshold widely seen as unsustainable.
Despite the upbeat results, Thursday’s sale of EUR8.5 billion of long-term Italian debt maturing between 2014 and 2022 was seen as a bigger test of market confidence in the country’s sovereign debt.
The euro was moderately higher against the pound, also trading close to an eleven-month trough with EUR/GBP up 0.02% to hit 0.8342.
The single currency was lower against the yen and the Swiss franc, with EUR/JPY retreating 0.19% to hit 101.58 and EUR/CHF slipping 0.13% to hit 1.2196.
Data showed earlier that Switzerland’s leading economic barometer declined significantly more-than-expected in December, falling to a new low for the second consecutive month.
In Japan, preliminary data showed that industrial production fell more-than-expected in November, tumbling 2.6%, while a separate report showed that retail sales declined more-than-expected in November, falling 2.3%.
Also Wednesday, Japan’s government reiterated its will to intervene in the foreign exchange market in order to curb the appreciation of the yen when necessary.
Elsewhere, the euro was lower against the Canadian Australian and New Zealand dollars, with EUR/CAD declining 0.19% to hit 1.3289, EUR/AUD falling 0.28% to hit 1.2833 and EUR/NZD retreating 0.40% to hit 1.6842.