2010.08.1812:22:00UTC+00Euro Pauses Wednesday As Economic Jitters Remain

The euro was stuck in neutral versus other majors on Wednesday amid lingering uncertainty about the health of the global economy.

Increased risk aversion has weighed on the euro of late, due to speculation that developed economies will grow at a snail's pace through the next few quarters.

Global stocks wobbled and US shares turned lower in early dealing this morning.

A successful German bond auction gave the euro a measure of support.

The euro continued to show a lack of direction versus the dollar, with the pair settling into a range between 1.2800 and 1.3000 over the past week.

The single currency topped out at 1.2921 overnight, then headed lower to 1.2850.

The day's only economic news of note from the US came in the form of weekly mortgage applications data from the Mortgage Bankers Association.

Current owners are taking advantage of the rates to refinance their existing mortgages.

The Mortgage Bankers Association said refinancing activity increased 17.1 percent from the previous week, the biggest jump since May 2009. However, the MBA's seasonally adjusted purchase index decreased 3.4 percent from one week earlier.

The euro came under modest pressure versus the yen as well, wobbling around 109.60. Back in June, the euro hit a 9-year low of 107.30.

The euro and the sterling stood practically still against one another, even after the minutes of the last Bank of England policy making meeting painted a relatively rosy picture of the region's economy.

Voting members of the Bank of England were not unanimous in holding interest rate at a historic low in August, the minutes of the meeting showed. The vote was 8-1, with Andrew Sentance remaining the lone voice in the wilderness calling for rate hike.

The triple-A sovereign ratings of France, Germany, the U.S. and the U.K. are well positioned, despite the fiscal challenges, rating agency Moody's said Tuesday.

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