Euro Rallies on Successful Auctions

Jan

Euro Rallies on Successful Auctions

Tagged Under : Auctions

The euro surged versus the US dollar in reaction to successful Spanish and French debt auctions. Moreover, negotiations for Greece debt situation also created hopes among investors for the single currency. Spanish auction ended with higher demand and lower yields while France also saw higher demand for its medium term bonds since the its downgraded rating by Standard & Poor.

Research director, Kathleen Brooks from a well known forex site commented, “Markets love liquidity and this is reflected in a much better tone to risk sentiment as we get close to the end of the week, the successful French and Spanish bond auctions today should be expected since the ECB funding for banks relieves some pressure on Paris and Madrid to support their banks financially.”

The euro gained to 1.2942 against the US dollar on Thursday as compared to 1.2852 on Wednesday’s late trading hours. The euro also gained versus the yen to 99.86 as compared to 98.71 on Wednesday.

The dollar index DXY which tracks the greenback’s movement versus its six major rival currencies declined to 80.198 as compared to 80.540 on Wednesday’s North American trading session.

Among other currencies, the British Pound surged to 1.5473 against the US dollar as compared to 1.5438 on late Wednesday. Against the Japanese yen, the greenback gained to 77.17 as compared to 76.79 on Wednesday’s late trading hours.

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