Euro Gains Against US Dollar on Spanish Bonds and US Jobs
Euro is heading higher today as better news helps spur risk appetite. Euro is finding support as the Spanish bond auction outperforms expectations, and as US jobs data shows improvement.
Even though there are still concerns about whether or not Spain will as for a bailout in a reasonable amount of time, there has been some improvement in the situation. Spanish bonds outperformed, with prices rallying and yields falling. Indeed, Spanish bond yields fell 14 points to 5.78 per cent on the 10 year debt. The news was accompanied by the word that German debt fell as well.
On top of that, there is encouraging news out of the United States. The unemployment rate has fallen to 7.8 per cent, and the economy add more jobs. September nonfarm payrolls added 114,000 jobs, and the number of jobs added for July and August were both revised upward. The news is providing hope for the US economy, and kicking riskier assets into higher gear.
With this good news, the euro is gaining against the US dollar, as well as other major currencies. There are still problems to overcome in the eurozone, but more Forex traders seem to feel that the euro will make it through the storm.
At 13:22 GMT EUR/USD is up to 1.3037 from the open at 1.3018. EUR/GBP is up to 0.8045 from the open at 0.8039. EUR/JPY is up to 102.7030 from the open at 102.1655.
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Earlier News About the Euro:
- Euro Gets Boost from Hope for the Eurozone (2012-10-04)
- Euro Slips against US Dollar on Recession Concerns (2012-10-03)
- Euro Gains on Signs that Spain is Ready for a Bailout (2012-10-02)
- Stress Test of Spanish Banks Leads to Rebound of Euro (2012-10-01)
- Euro Slips against Dollar in Forex Trading (2012-09-27)