Source: ForexYard
The euro took losses during the overnight session, but managed to remain well above its recent lows against the US dollar and Japanese yen. Expectations that the European Central Bank will act to lower Spanish and Italian borrowing costs on Thursday have helped boost the common-currency in recent days. Crude oil and gold remain elevated as well, as risk taking has returned to the marketplace.
Main News for Today
Italian 10-Year Bond Auction
• The main reason behind the euro’s bearish trend last month was rising borrowing costs in Spain and Italy
• If today’s news signals that demand for Italian bonds is low or that borrowing costs have gone up, the euro could reverse some of its recent gains during afternoon trading
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