Positive Euro-Zone News Gives EUR Temporary Boost

The euro saw temporary gains during the first half of yesterday's trading session following the release of Greek polls that indicated gains for pro-austerity political parties ahead of elections later this month. That being said, concerns regarding the Spanish banking sector caused the common-currency to reverse its upward trend later in the day. Against the JPY, the euro advanced over 60 pips, reaching as high as 98.00, before turning downward and dropping to 97.15 by the afternoon session. Against the USD, the euro was up close to 70 pips before dropping within reach of a recent two-year low. Today, any new announcements regarding the economic turmoil in Spain are likely to generate market volatility for euro pairs. Analysts are warning that the markets are still overwhelmingly bearish toward the euro, meaning that the currency is unlikely to see meaningful gains in the near future. Additionally, traders will also want to pay attention to the US Non-Farm Payrolls figure. Should the figure come in below expectations, investors may choose to place their funds with safe-haven assets which could lead to additional losses for the euro before markets close for the week.

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