Wednesday, 18 Aug 2010

EUR Gains on German Debt Auction

The EUR extended gains against the dollar on Wednesday after a German government bond auction attracted solid demand easing some concerns about fiscal instability in the European Union. The Dollar is currently trading higher against the USD by nearly 50 pips at 1.2875. It is also trading higher against JPY and CHF.

The single currency, which slid below $1.19 in June on Euro-Zone debt trouble, has since risen by more than 8% after smooth government debt auctions in Greece, Portugal, Spain and Ireland eased concerns.

Tomorrow, forex traders cannot afford to overlook a batch of data that is expected from the leading economies. Both the British Retail Sales and U.S Unemployment Claims will be released at 8:30 GMT and 12:30 GMT respectively, promising an extremely volatile trading day. Traders should take advantage of this unique opportunity and use the volatile market in order to capitalize profits.