Sun, 09 Sep 2012 22:00:00 +0000

Euro Finishes Week on a Bullish Note

The euro was able to rally against most of its main currency rivals on Friday, after a worse than expected US jobs report caused investors to revert their funds to the common-currency. The EUR/USD shot up close to 180 pips over the course of the day and eventually closed out the week at 1.2815, its highest level since May of this year. Against the Japanese yen, the common currency gained more than 50 pips to reach a two-month high at 100.23. Turning to this week, the euro is likely to be influenced by a batch of potentially significant US news, particularly the FOMC statement on Thursday. That being said, traders will also want to pay attention to the results of an Italian ten-year bond auction, also scheduled to take place on Thursday. Last week's unveiling of a plan to combat the euro-zone debt crisis by the ECB led to gains for the euro. If Thursday's auction indicates strong demand for Italian bonds, the common-currency may extend its recent bullish movement.