Forex - EUR/USD adds to gains on bullish sentiment
Published Jan 19, 2012 01:05PM ET
Investing.com - The euro advanced against the U.S. dollar Thursday, as successful French and Spanish bond auctions increased the euro bullish sentiment on the session
EUR/USD hit a low of 1.2840 during U.S. trade. The pair hit a high of 1.2939 and is currently trading at 1.2922, up 0.45%.
The pair was likely to find support at 1.2733, Wednesday's low and technical resistance exists at 1.2946, the high of January 5th.
The single currency gained strength as yields fell on all maturities as Spain auctioned EUR7.97billion of two, three, and four year notes in its first sale of medium and long term debt since losing its AAA rating last week.
Spain sold EUR6.6billion of bonds maturing in 2016, 2019 and 2022 beating the maximum target of EUR4.5billion. Yields on the 2019 and 2022 dropped, however borrowing costs increased on the 2016's.
The European Central Bank fueled the optimism by stating that it has a whole range of unconventional measures to manage the debt crisis.
In the meantime, investors remain cautious as talks continue between Greek Prime Minister Lucas Papademos and the nation's creditors after breaking down last week.
Further Greek News of hedge funds considering suing the island nation, in human rights court, for losses added a euro bearish aura to the otherwise optimistic session.
In the U.S., initial U.S. jobless benefit claims plummeted 50,000 to 352,000 in the week ending January, 14th. This crushed the median analyst's forecast of 384,000.
Manufacturing activity in the Philadelphia region dropped to 7.3% from 10.3% the previous month. Analysts expected the index to improve to 11%. .
The Euro advanced against the pound with EUR/GBP adding 0.35% to 0.8362.
Investors are awaiting German producer price numbers and the U.K. retail sales report, along with Australia's import price figures and U.S. existing home sales on Friday.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.