European session: the euro weakened versus the yen and the dollar after Italian borrowing costs
The euro weakened versus the yen and the dollar after Italian borrowing costs declined less at a note sale today than when the country auctioned bills yesterday.
Italy sold 3 billion euros of notes due in November 2014 today at an average yield of 4.83 percent, down from 5.62 percent at a previous auction on Dec. 29. It also sold debt due in July 2014 and August 2018. Yesterday, the nation sold one- year bills at 2.735 percent, more than half of the 5.952 percent yield at the prior sale on Dec. 12. “Expectations were built up quite significantly following yesterday’s auction,” said Ian Stannard, head of European currency strategy at Morgan Stanley in London. “Any rebound we see in euro-dollar is going to remain limited, and we remain bearish over the medium term.”
The 17-nation currency dropped against all but two of its 16 major counterparts as concern recent measures by European leaders may still fail to resolve the region’s debt crisis.
The Dollar Index headed for a weekly decline before a U.S. report that economists said will show consumer confidence improved this month, reducing demand for the U.S. currency as a haven.
EUR/USD: during european session the pair fell to $1.2765.
GBP/USD: during european session the pair updated session low.
USD/JPY: the pair has traded nearby Y76.75.