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.”


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