Forexpros - The euro slid to a three-month low against the pound on Thursday, as sentiment on the shared currency remained fragile ahead of Italian government debt auction later in the day. EUR/GBP hit 0.8227 during European morning trade, the pair’s lowest since January 9; the pair subsequently consolidated at 0.8232, slipping 0.11%. The pair was likely to find short-term support at 0.8221, the low of January 9 and a 16-month low and resistance at 0.8263, Wednesday’s high. Italy was to offer EUR5 billion of three-year government bonds later in the day, amid expectations that borrowing costs would rise on the back of investor concerns over the risk of sovereign debt contagion from Spain. Concerns over high Spanish borrowing costs eased somewhat on Wednesday, after European Central Bank Executive Board member Benoit Coeure said that the central bank still had its bond-buying program available as an option to ease pressure on peripheral euro zone bond yields. He added that the current level of market pressure on Spain was not justified given the reforms being undertaken by its government. In the U.K., official data showed that the trade deficit widened more than expected in February as exports to countries outside the EU dropped. The Office for National Statistics said the trade deficit for goods grew to GBP8.8 billion compared with a forecast of GBP7.7 billion and up from GBP7.9 billion in January. The pound held gains against the U.S. dollar, with GBP/USD adding 0.17% to hit 1.5933. Later Thursday, the U.S. was to release official data on initial jobless claims, as well as reports on producer price inflation and the trade balance.

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