Thursday, 17 Jun 2010

Negative U.S Economic Data Curbs EUR's Rally

The EUR was trading above $1.24 for the first time in almost three weeks after a successful Spanish bond auction which eased concerns the country is headed to a Greek style debt crisis, thus alleviating concerns for the Euro-Zone region.

However, the common currency pared gains as the release of negative economic data from the U.S dragged equities to the red. Risk aversion returned as the Federal Reserve Bank of Philadelphia's factory index slumped in June and the number of Americans seeking jobless benefits last week unexpectedly rose.

The EUR is currently at $1.2370 after touching $1.2413, the strongest level since May 28th. The common currency is at 112.26 yen, from 112.57. The Dollar fell 0.7% to 90.82 Yen. It touched 90.51, the weakest since May 27th.