Euro remains range-bound in Asian trading session

The Euro moved lower but remained range-bound during the Asian trading session, as investors hold their positions ahead of the upcoming Italian sovereign debt sale and this weekend's critical Greek vote, the latter of which will likely shape the Eurozone's future. Earlier this week, yields on 10-year benchmark Spanish sovereign debt rose to a Euro-era high at 6.8% despite the government's official request for bailout help as investors worry that the government's rising debt loan will mean that debt markets' access is blocked. Another factor which served to undermine Euro confidence was comments made about Italy's potential borrowing costs by the Austrian finance minister who worried aloud that they might soon need a bailout, too, says DailyForex.com.

Photo: AP photo

Meanwhile investors were focused on the outcome of Sunday's general election in Greece, where pro and anti-bailout parties are neck-and neck in the polls, fuelling fears that the country could be forced to exit the euro area. The euro pushed higher against the pound and the yen, with EUR/GBP easing up 0.11% to hit 0.8038 and EUR/JPY rising 0.21% to hit 99.6 Later in the day, Italy was set to auction as much as EUR4.5 billion of government bonds. The euro zone was to release official data on industrial production, while Germany was to hold an auction of 10-year government bonds, informs Investing.com.