Forex - EUR/USD hits 2-day high after strong Irish bond auction

Published 09/21/2010, 06:22 AM
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Investing.com – The euro advanced to a 2-day high against the U.S. dollar on Tuesday, after a successful auction of Irish Government debt boosted eased fears over the euro zone sovereign debt crisis.

EUR/USD hit 1.3149 during European morning trade, the pair's highest since September 17; the pair subsequently consolidated at 1.3134, gaining 0.55%.

The pair was likely to find support at 1.2975, last Friday's low and short-term resistance at 1.3232, the high of August 10.

Earlier Tuesday, Ireland's National Management Treasury Agency said that it had raised EUR 1.5 billion in a fully subscribed auction of Government bonds.

However the country's borrowing costs rose amid concerns over the cost of bailing out the country's banking sector. The yield on 8-year bonds was 6.02% compared to 5.08% in June, while 4-year bonds were sold at a yield of 4.7%, compared to 3.6% in August.

The euro was also up against the pound, with EUR/GBP gaining 0.73% to hit 0.8464.

Later in the day, the U.S. was to release official data on building permits and housing starts, while the Federal Reserve was to announce its benchmark interest rate.

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