Euro is gaining today as the latest Spanish auction is considered a success. There is optimism about what’s next for the eurozone right now, and that is translating into gains for the euro, which some think could rise to the 1.3400 level against the US dollar fairly soon.
Euro is benefitting from a combination of optimism and risk appetite today, heading higher as the Spanish bond auction is considered a success. Also helping the euro is the fact that risk appetite seems to be on the rise, with indices around the world gaining, and high beta currencies seeing gains as well.
Spanish bond yields remain little changed in the market following a sale of 4.5 billion euros of three existing bonds and notes. FactSet reports that the 10-year yield for Spanish bonds is at about 5.04 per cent. With the demand strong for Spanish debt, there are hopes that the eurozone really is beyond the worst of its troubles. That is helping the euro right now.
Additionally, risk appetite seems to be improving with positive economic data out of the United States, and with stock indices around the world gaining ground.
At 14:42 GMT EUR/USD is up to 1.3341 from the open at 1.3289. EUR/GBP is up to 0.8355 from the open at 0.8303. EUR/JPY is up to 119.2045 from the open at 117.4550.
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