Thu, 08 Mar 2012 23:00:00 +0000
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.
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