Euro Sees Mixed Trading Day

While the euro saw significant gains against its safe-haven rivals yesterday, including the USD and JPY, it dropped against other riskier currencies including the AUD. In addition to the 70 pip gain against the USD, the euro was able to advance close to 120 pips against the JPY. By the end of the European session, the EUR/JPY was trading around the 100.50 level. At the same time, better than expected Australian employment data resulted in the EUR/AUD falling more than 100 pips over the course of the day. The pair reached as low as 1.2592 before staging a slight upward correction to stabilize at 1.2629. Turning to today, traders will want to pay attention to any announcements out of the euro-zone, particularly with regards to Spain and Greece. While the euro has seen a fairly significant recovery against the dollar and yen this week, analysts are warning that the economic and political problems that have plagued the euro-zone still have the potential to weigh down on the common-currency. Any negative indicators out of the region may cause the euro to quickly reverse its earlier gains.

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