Thursday, 10 Jun 2010

EUR Sees Strong Upward Momentum in Heavy Trading Day

The Euro had a very positive day today, making gains on most of its major currency rivals including the U.S. Dollar and Yen. News regarding fresh demand for Spanish bonds, as well as an announcement from the ECB that emergency loans to European banks would continue for the foreseeable future boosted the European currency. EUR/USD, currently trading around the 1.2117 level, is up over 100 pips from this morning. EUR/JPY also shot up around 130 pips today, and is currently trading around the 110.50 level.

Tomorrow, traders will want to pay attention to several U.S. news events that are likely to create volatility in the marketplace. The U.S. Core Retail Sales report as well as the Prelim UoM Consumer Sentiment figure could both boost the Dollar as we close out the week. At the same time, should the reports come in below expectations, the Euro may be able to extend its gains.