The euro edged up against the dollar on Wednesday as investors trimmed hefty bearish positions, but worries about debt turmoil in Spain and nerves ahead of elections in Greece kept the common currency under pressure.

Concerns were growing that Spain’s problems might ensnare Italy, whose borrowing costs are also at very high levels.

Even yields on safe-haven German bunds have climbed recently, which some see as evidence the rising cost of shoring up the euro zone’s finances may be denting the creditworthiness of Europe’s largest economy and paymaster.

But some investors were cutting back on the market’s very high short positions in the euro, particularly with the weekend’s Greek elections looming, keeping the euro supported.