Thursday saw the common currency of the European Union climb against the world's reserve currency in the aftermath of Spain conducting a strong debt auction, selling more than maximum targets during the first auction of the year, according to Bloomberg.
Following three trading sessions of losses, the euro also rose in value against the Japanese yen, driving toward its 18-month high. Another factor that benefited the euro was the European Central Bank deciding against cutting interest rates as indications mounted that the sovereign debt crisis has been less damaging. But Luxembourg Prime Minister Jean-Claude Juncker, who has spearheaded a group of euro-region finance ministers since 2005, said more work on the debt scourge remains.
"The worst probably is over, but what we still have to do is difficult," the leader told a European parliament committee in Brussels on Thursday, Bloomberg reports.
The past month has seen the 17-nation monetary unit climb 0.9 percent, the news source reports, noting the yen has lost 7.8 percent of its value while the U.S. dollar has fallen 0.6 percent.
But the central bank of Europe still may implement interest rate cuts up the road, according to Reuters.
Risk Disclosure
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.
