EUR/USD at 1.2865 Before Confidence Data and Italian Auctions

The euro traded within 0.3 percent of a four-month low versus the dollar as concerns that debt- crisis contagion will spread threatened to sap confidence in the 17-nation currency bloc.

The shared currency remained lower for a second day after dropping 1.1 percent on March 25 as Italy prepared to auction as much as 7 billion euros ($9 billion) of bonds, and ahead of data forecast to show continued weakness in euro-area consumer sentiment.

“You’ve still got outstanding issues that need to be dealt with” in the currency bloc, said Joseph Capurso, a Sydney-based foreign-exchange strategist at Commonwealth Bank of Australia (CBA), the nation’s biggest lender. “You’ve still got an economy that is in recession. That’s likely to keep the euro heavy.”

Bloomberg

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Stuart McPhee

Stuart McPhee

Senior Currency Technical Analyst at Market Pulse
Stuart McPhee has more than 16 years’ experience as a private trader and he specializes in technical market analysis of major currency pairs. He is the author of several bestselling trading books, most recently the fourth edition of his popular book “Trading in a Nutshell” (John Wiley), and he contributes articles to daily newsletters and blogs. He produces articles and videos on the how-tos of technical trading. Based in Australia, Stuart speaks at conferences and events worldwide.
Stuart McPhee