EUR Sees Gains amid Positive News

The euro climbed against virtually all of its main currency rivals yesterday, as optimism that Greece would successfully complete a debt swap resulted in an increase in risk taking among traders. A press conference from the ECB President did little to influence the euro, after euro-zone interest rates were left at their current level of 1%. The EUR/USD climbed as high as 1.3272, while the EUR/JPY gained approximately 135 pips, peaking at 108.33. Despite the gains, analysts were quick to warn that ongoing worries regarding the euro-zone debt crisis limited any gains by the common currency. Today, employment data out of the US is likely to result in heavy fluctuations among euro pairs. Should the Non-Farm Payrolls figure come in at or above the expected 208K, the euro may be able to extend yesterday's gains against safe-haven currencies, specifically the Japanese yen. At the same time, investors could revert back to safe-haven assets in the case that the employment data comes in significantly below forecasts. The euro would likely drop against most of its main currency rivals as a result.

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. ForexYard

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. ForexYard