The pair fell for the fourth session on Thursday with optimism in markets after French and Spanish successful bond selling which damped demand on the dollar.
Still, the main focus is on European auctions to see the ability of euro area nations to raise money to repay debt. So far, auctions from euro area nations this week are satisfying.
Francesold 7.965 billion euros of medium-term bonds on Thursday, where the yield of the 2014 bills retreated to 1.05% from 1.58% the prior auction, the 2015 notes yields fell to 1.51% compared with 2.44% reached at November’s auction and the 2016 securities also showed a drop in borrowing cost to 1.89% from 2.82% at November’s auction.
Likewise, the Spanish government auctioned 6.61 billion euros of debt maturing in 2016, 2019 and 2022, where the yield on the 10-year securities fell to 5.403% compared with 6.975% at November’s auction.
Moreover, Greece will resume talks for the second day with private sector debt holders after the halt of the negotiations on January 13, to reach an agreement over the size of losses to be bared by creditors to avert a possible default as early as in March. One finance ministry official said on Wednesday a deal could be reached with creditors by the end of the current week.
Regarding fundamentals, data from the U.S. showed that housing starts fell 4.1% in December from the prior 9.3% rise and building permits slipped 0.1% from the revised 5.6% soar. On the other hand, initials jobless claims improved to 352,000 in the week ended Jan. 14 from the revised 402,000 a week before. However, the pair was not much affected by the news.
On Friday, the United States is set to end the week with the Existing Home Sales for the month of December at 13:00 GMT where they are expected to extend the gain with 5.2% to 4.65 million from 4.42 million.
The data may affect the pair’s movement, yet the pair will probably be more affected by the general sentiment which will focus on the latest developments from the euro zone.