Forex News: Euro Floats Higher on Fewer 2013 German Debt Sales
The Euro has made a small 30 point rally over the first part of today’s European session. EURUSD saw a sharp 80 point reversal of all of the day’s gains in late trading yesterday, when pessimistic news about US fiscal cliff talks combined with some negative comments from the Greek finance minister to send equities lower.
According to the Financial Times, Finance Minister Yiannis Stournaras said yesterday that 2013 will make or break Greece’s membership within the Euro-zone. He was referring to the popularity of the left-wing anti-austerity parties in the Greek government. EURUSD closed around 1.3225 following the report of Stournaras’s comments.
The Euro slowly gained over most of today’s session without a specific driver, however news of Germany cutting its debt issuances in 2013 to 250 billion Euros sent the single currency towards 1.3250 against the US Dollar. This year’s bond sales totaled 255 billion Euros according to the Federal Finance Agency, and next year’s bond sales will be the lowest in five years.
Also in Greece, 31.9 billion Euros of bonds were purchased in the debt buyback program according to the Greek Debt Agency. In Italy, PM Monti said he will support the three centrist Italian parties in February’s elections. It seems like Monti will not be running for re-election.
In Japan, following the BoJ announcement to add to stimulus and the lack of an announcement of a new inflation target, Governor Shirakawa said the discussions on a price target will end next month. He also said that the inflation target is understood as a flexible measure.
In economic releases, UK retail sales were unchanged in November, disappointing expectations for a 0.4% rise in sales. Sterling temporarily declined but did not sustain any losses. German producer prices rose slightly less than expected in November, and the Swiss trade balance rose to an impressive 2.95 billion Francs.
The Euro is currently trading slightly below 1.3250 against the US Dollar. A new eight month high was set yesterday around 1.3308, and that could now provide resistance. Support could be provided by a previous resistance level at 1.3158.
EURUSD Daily: December 19, 2012
--- Written by Benjamin Spier, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.