Investors saw the success of the Spanish bond auction as good news and buoyed the Euro in response. The Spaniards sold $6.61 billion which was higher than expected.
There’s way more to be played out in the slow grinding downward of both the Euro and the US dollar but today saw an uptick.
As you know being a trader you don’t need something going up just a trend you can capitalize on either way.
Here’s more from Reuters:
“* Euro rises to two-week high versus dollar and yen
* Stop-losses lurking above, scope for further short squeeze
* Spain bond sale adds to optimism
By Neal Armstrong
LONDON, Jan 19 (Reuters) – The euro rose on Thursday,
supported by a solid response to a Spanish debt auction with an
improvement in risk appetite spurring investors to unwind
bearish positions, although brief rallies are unlikely to break
the single currency’s downtrend.
Spain sold 6.61 billion euros of government bonds on
Thursday, more than its announced target, in an auction which
analysts said went well, supported by domestic banks and a
pickup in appetite for riskier assets.
That ensured the euro retained support after hitting
two-week highs versus the dollar and the yen in earlier trade.
Hopes the IMF could boost its resources to help countries
deal with the euro zone debt crisis and some optimism over talks
to avoid a chaotic Greek default were adding to the positive
tone.
“We think the ongoing short squeeze we’ve seen in the euro
this week can continue. The newsflow we are seeing is reasonably
encouraging for risk with the IMF headlines yesterday and hopes
growing over the Greek restructuring talks,” said Tom Levinson,
currency strategist at ING.
Talks between Greece and its creditors are proceeding, but
much more progress is needed before a bond swap to reduce the
country’s towering debt pile is reached, three sources close to
the talks said.
”
Investors appetite for risk doesn’t seem to be percolating up. Trade with caution but there are profits to be made. FAP Turbo forex trading software can help with this.
