Awww yeah! Six for six, baby! The euro extended its gains against the dollar in yesterday’s trading. EUR/USD rallied almost immediately after the day started at 1.3051 and finished 71 pips higher at 1.3122.
Meanwhile, EUR/JPY was up with a 65-pip win at 103.63 by the end of the New York session.
What had the euro flaunting its swag on the charts yesterday? Well, for the most part, euro bulls had credit ratings agency Moody’s to thank for their run.
It issued a statement reassuring Spain of its Baa3 rating. Remember that there had already been speculations that the agency might downgrade the country’s credit rating to junk status. And so, Moody’s decision to keep its grade on Spain steady had a lot of market participants giddy.
I wonder if the positive vibes brought about by the credit ratings agency’s decision would carry on in today’s trading. Our forex calendar doesn’t have any economic report on tap from the euro zone, however, the EU Leaders’ Summit and a Spanish bond auction are scheduled today.
Keep an ear out for what EU policymakers have to say about Spain and Greece. If they hint that they’re more willing to help out the two debt-ridden nations, we might just see the euro extend its gains. As for the Spanish bond auction, keep tabs on the demand as well as the borrowing costs that the country would have to pay.
Good luck!