Wednesday saw the common currency of the European Union climb to its seven-week high against the world's reserve currency as anti-debt efforts proved to be key to Greece and Spain, Reuters reports.
Terms and conditions of a program for buying back debt in Greece were better than forecast. The dollar suffered the consequences of mounting concerns about political leaders' abilities to successfully negotiate the fiscal cliff as the year-end deadline looms.
"The Fed is likely to take fresh steps to replace the Operation Twist. Speculation of more aggressive easing in Japan is all over the place, and Australia also cut rates. By default the euro rose," senior strategist Makoto Noji with SMBC Nikko Securities told the news source on Wednesday.
Both Spain and Italy, two nations for which officials were mightily concerned regarding debt issues, saw bond yields drop. European stocks this week have been on the uptick and barreling toward their top rate thus far this year.
The 17-nation monetary unit also gained in value against the Japanese yen as European stocks monitored advances in the Asian market, according to The Wall Street Journal.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.