Europen session: the euro fell

Data:

10:00 EU(17) Industrial production (September) -2.0%

10:00 EU(17) Industrial production (September) Y/Y 2.2%

The euro fell as Italy’s borrowing costs rose after the nation sold 3 billion euros ($4.1 billion) of bonds at the highest yield since 1997.

The shared currency dropped as Italy sold the five-year securities to yield 6.29 percent, up from 5.32 percent at the previous auction and the highest since June 1997.

Italy’s Treasury auctioned 3 billion euros of September 2016 notes, the maximum target. Demand rose to 1.47 times the amount on offer, from 1.34 times last month. Italy’s 10-year bond yields surged above 7 percent last week. The Italian five- year yield jumped 11 basis points today, reversing gains that pushed it down by as much as 12 basis points.

The euro also declined today after Spiegel magazine reported that German lawmakers are preparing for Greece’s departure from the currency in case the new government doesn’t commit to carry forward reforms that have already been agreed.

EUR/USD: the pair fell in $1.3630 area.

GBP/USD: the pair fell in $1.5930 area .

USD/JPY: the pair showed low in Y76,80 area. Later the rate restored above mark Y77,00.