Euro is breaking higher today, moving through the 1.29 level against the US dollar. Good news regarding debt auctions in Europe, plus good labor market news in the United States, has Forex traders looking for higher yields.

Euro is gaining in Forex trading today, with a measure of optimism returning as Greek and Spanish borrowing costs drop. Also helping the euro is the good news coming out of Germany, with a better than expected ZEW.

This week looked good for the euro as Forex traders felt a little less concerned about the situation in Europe, but then Standard & Poor’s came in and spoiled traders’ mood.

There were high hopes for the latest Italian debt sale, but they were disappointed. Indeed, even though Italian debt costs dropped below 5 percent, the sale failed to raise the kind of money needed to overcome some of the budget woes. As a result, the euro is down against its major counterparts.

The Great Britain pound fluctuated against the US dollar and slumped versus the euro today on speculations that the UK central bank will boosts its asset purchase program. The bank left the program and its main interest rates unchanged today.

Euro is managing to hold on to some of its gains for now. Euro saw some small success against the US dollar yesterday, and is working to keep those gains today. For now, the euro is receiving some help from European leaders, but Forex traders will need to get on board if the euro is expected to see any real advances anytime soon.

The Great Britain pound ticked down against the euro after the leaders of Germany and France have met today in order to find a way out of the dangerous situation with the European debt. The UK currency was higher versus the US dollar and the Japanese yen.

Bank capitalization concerns are the main focus today, especially after the debacle involving UniCredit. Worries about bank capitalization, and a continuation of the sovereign debt crisis in many eurozone states, has the euro heading lower again today.

Yesterday, UK pound gained solidly against the euro, but today some of those gains are being given back. UK pound is lower on a combination of risk aversion, as well as concerns as British politicians consider the effects of British isolation from the rest of the eurozone.

Euro has plummeted below the 1.28 level against the US dollar today as concerns pile up. The latest French bond auction saw higher borrowing costs, and there are renewed concerns about a credit rating downgrade for country. On top of that, Italian banking weakness remains.