Euro advances after Spanish and Greek bond selling
ecPulse
Published Jul 19, 2011 08:07AM ET
The European common currency advanced against its major counterparts after a bond selling by Spain and Greece.
The Spanish government sold 4.45 billion euros of 12-month bills and 18-month notes where the selling came just lower than the maximum target yet the average yield was higher than the prior auction.
On the other hand, Greece raised 1.62 billion euros from selling 13-week bills with interest rate below the last auction.
Now, there are some hopes that European leaders can reach a plan to pass the second bailout for Greece to avoid default. European leaders will meet on July 21 for the second time this month to discuss the Greek rescue fund after debates regarding private-sector participation in the Greek debt.
The euro is currently trading at 1.4175 against the greenback where the pair fell from a high of 1.4217 after the release of worse-than-anticipated German investor confidence report.
Zew survey (economic sentiment) slipped to -15 in July, the lowest in 2 1/2 years, compared with June's reading of -9.0, while the same gauge in the euro zone plunged to -7.0 from -5.9.
The euro-dollar pair has recorded a low of 1.4093, whereas the trading range for today is among the major support at 1.3910 and the major resistance at 1.4325.
Moving to the British pound versus the dollar, it is showing a rise to trade at 1.6120 where it failed to breach resistance at 1.6155. So far, the pair has recorded a high of 1.6159 and a low of 1.6039 whereas the trading range for today is among key support at 1.5880 and key resistance at 1.6250.
The green currency is showing a decline against majors as it faces strong resistance at 75.50, according to the dollar index, before the release of housing starts data later in the day.
With regard to the dollar-yen pair, it is showing slight decline, where the pair is moving near 78.90 while it opened the day at 79.03, whilst the high was recorded at 79.14 and low is at 78.86.
The trading range for today is among key support at 77.45 and key resistance now at 80.65.
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Written By: ecPulse
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