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Forex - EUR/USD erases losses after Portugal debt sale, German data

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Forex Pros - The euro erased losses against the U.S. dollar on Wednesday, edging modestly higher after the Portuguese government successfully sold EUR1 billion of two-year bonds and a report showing that German industrial production accelerated.

EUR/USD clawed back up from 1.3856, the daily low, to hit 1.3930 during European early afternoon trade, rising 0.18%.

The pair was likely to find support at 1.3742, the low of March 3 and resistance at 1.3988, Tuesday's high.

Portugal's government debt agency sold the bonds at a yield of 5.9%, up from 4.0% at a similar sale in September.

Earlier in the day, the yield on 10-year Portuguese government bonds neared 7.8%, the highest since the launch of the single currency in 1999. The cost of insuring Portuguese debt against non-payment continued to rise after the auction.

Elsewhere, official data showed that industrial production in Germany rebounded in January, as construction output improved after the weather-related slump in December.

The Federal Ministry of Economics and Technology said industrial production rose 1.8% month-on-month in January, after falling by a revised 0.6% the previous month, surpassing expectations for a 1.7% increase.

Meanwhile, the euro was down against the pound, with EUR/GBP shedding 0.19% to hit 0.8586.

Also Wednesday, official data showed that the U.K. goods trade deficit contracted sharply in January, recovering from its worst reading on record in December.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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