Tuesday, 11 Jan 2011

EUR Higher vs. Major Currency Pairs

The EUR extended gains against most of its currency pairs on Tuesday, with traders citing talk of increased Portuguese bond buying by the European Central Bank as helping lift the currency. The EUR is currently trading higher against the CHF by nearly 100 pips at 1.2660. It is also trading higher against the USD and JPY.

Traders tied the euro's rebound to several factors, including talk of increased ECB purchases of Portuguese government debt. The euro has struggled lately because investors fear a debt crisis that has already claimed Greece and Ireland may be spreading to Portugal.

Looking ahead to tomorrow, much vital data is expected from the leading economies. Traders are advised to pay special attention to two leading indicators, the British Trade Balance and U.S Import Prices. A positive end result of each of these indicators is likely to strengthen the local currency the GBP and USD.