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Forex - EUR/USD climbs after Europe debt auctions, testing 1.23

Published 06/15/2010, 10:53 AM
EUR/USD
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EUR/JPY
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Investing.com – The euro jumped against the U.S. dollar on Tuesday, briefly rising above the 1.23 mark after Belgium and Spain sold government debt and Ireland issued bonds in auctions, quelling fears over Europe's debt crisis.

EUR/USD hit 1.2304 during European afternoon trade, an 8-day high; the pair subsequently consolidated around 1.2288, gaining 0.55%.

The pair was likely to find resistance at 1.2563, the high of May 24, and support at 1.1877, the low of June 7 and a 4-year low.

The euro's rise also followed mixed U.S. economic data, which showed that while manufacturing activity in New York State rose at a slower rate than expected in June, foreign purchases of U.S. securities grew at a faster pace than forecast in April.

The single European currency rose versus the yen, meanwhile, with EUR/JPY gaining 0.19% to reach 112.11.

Earlier in the day, a survey by the ZEW research center showed that German investor and analyst sentiment tumbled unexpectedly in June.

The center said its closely watched index of German economic sentiment plunged to 28.7 during the month, down from April's reading of 45.8. Economists had expected May's reading to come in at 48.7.

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