Forex - EUR/USD soars on Spanish auction, Draghi\'s words

Published 01/12/2012, 01:06 PM
Updated 01/12/2012, 01:26 PM
EUR/USD
-
EUR/GBP
-
Investing.com - The euro soared higher Thursday on European Central Bank's President Mario Draghi stating he sees signs of economic stability and Spain hitting twice the target at a note auction.  

EUR/USD hit a low of 1.2700 during U.S. trade. The pair is off a high of 1.2845 and is currently trading at 1.2831 up 0.98%.  

The pair was likely to find support at 1.2700, the sessions low and  technical resistance exists at 1.2946, the high of January, 5th.  

The single currency found support at ECB President Draghi stated that he sees tentative signs of stabilization of activity at low levels but warned that the economy still faces substantial downside risks at a post policy meeting press conference.  

Both the ECB and the Bank of England made no changes to their interest rate policies with the ECB holding steady at 1% and the BOE maintaining its 0.5% rate.  

A Spanish note auction selling twice the maximum targeted amount and an Italian auction hitting estimates added to the euro bullishness.  

Mamoru Arai of Mizuho Financial, told Bloomberg, "Any good news for the euro zone could be a trigger for traders to cover their short postions."  

Meanwhile, in the U.S. data indicated that retail sales and unemployment figures missed estimates in a negative way adding to the bearish U.S. dollar sentiment on the session  

The Euro traded solidly higher against the pound with EUR/GBP adding  0.97% to 0.8370.  

Investors are awaiting U.S. import prices and the University of Michigan's inflation expectation numbers.






Latest comments

Risk Disclosure: 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.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.