The euro edged higher and held above a three-week low against the dollar on Tuesday, but its outlook was clouded by concerns over Spain’s fiscal woes and uncertainty over the timing of a possible aid request by Madrid.
The single currency was helped by data the previous day showing U.S. manufacturing grew slightly in September for the first time since May, a reading that weighed on the safe haven dollar and lent support to risky assets.
The euro rose 0.1 percent to $1.2901, inching away from Monday’s low near $1.2804, its lowest level in about three weeks.
Spain remained a focal point, with traders waiting for Madrid to seek a bailout and trigger the European Central Bank’s bond buying programme, a scheme aimed at lowering the borrowing costs of indebted euro zone countries.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.