European Session – EURUSD hits 6-week high after Italy bond auction
April 11, 2013 1:11 pm
The euro surged to a six-week high versus the dollar after news of a successful Italian sovereign bond auction resulted in lower yields. Spain’s borrowing costs also fell, with the 10-year bond yields reaching the lowest since November 2010.
The bond auctions show that optimism amongst investors is improving and it appears that Italian election risk already appears to be getting priced out and markets are getting less concerned about the political conundrums that are continually plaguing Europe.
EURUSD broke key resistance of $1.3100 as well as yesterday’s 1-month high of $1.3122 and shot up to a European session high of $1.3137 today. The pair is up 0.5 percent on the day so far.
EURJPY advanced to a more than three-year high, peaking at 130.80, up 0.4 percent in the Europe trade.
The yen took a pause from a decline versus the dollar as USDJPY stopped just 0.1 percent within the key 100.00 yen level. The dollar hit a new four-year high of 99.86yesterday and has since eased down to as low as 99.37 going into the US session today.
Sterling extended gains to hit a seven-week high $1.5407 versus the dollar , its highest since February 20 and was up 0.5 percent on the day. Traders cited a large buy order by British clearer. Against the yen, pound rose to a fresh 3-1/2 year high of 153.36 yen.
The Australian dollar jumped 0.4 percent versus the USD to the highest since January to $1.0581 while the New Zealand dollar surged to a high of 86.75 US cents, the highest since August 2011.
The euro surged to a six-week high versus the dollar after news of a successful Italian sovereign bond auction resulted in lower yields. Spain’s borrowing costs also fell, with the 10-year bond yields reaching the lowest since November 2010.
The bond auctions show that optimism amongst investors is improving and it appears that Italian election risk already appears to be getting priced out and markets are getting less concerned about the political conundrums that are continually plaguing Europe.
EURUSD broke key resistance of $1.3100 as well as yesterday’s 1-month high of $1.3122 and shot up to a European session high of $1.3137 today. The pair is up 0.5 percent on the day so far.
EURJPY advanced to a more than three-year high, peaking at 130.80, up 0.4 percent in the Europe trade.
The yen took a pause from a decline versus the dollar as USDJPY stopped just 0.1 percent within the key 100.00 yen level. The dollar hit a new four-year high of 99.86yesterday and has since eased down to as low as 99.37 going into the US session today.
Sterling extended gains to hit a seven-week high $1.5407 versus the dollar , its highest since February 20 and was up 0.5 percent on the day. Traders cited a large buy order by British clearer. Against the yen, pound rose to a fresh 3-1/2 year high of 153.36 yen.
The Australian dollar jumped 0.4 percent versus the USD to the highest since January to $1.0581 while the New Zealand dollar surged to a high of 86.75 US cents, the highest since August 2011.
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