Forex News – Euro rises after Spanish bond auction

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Euro rises to session high of 1.3502 against the dollar by 10:00 GMT after a successful Spanish bond auction attracts good demand, although at higher yields. Spain met its top target selling 3.75 billion euros worth of government bonds, sparking relief among investors .

Earlier in the morning EURUSD was trading as 1.3416.

France also held a bond auction today, selling 4.35 billion euros of debt across which was met with decent demand.

The euro has had some reprieve this week as investors have unwound hefty short positions in the euro, helped by signs that Germany and France are pushing for more rapid, deeper fiscal integration among euro zone countries. Yesterday’s coordinated central bank action helped boost the euro to fresh one week highs at 1.3532.

The debt auction today went well, adding support to the euro. However, the scope for gains could be limited as investors are focusing on the EU Summit on December 9 and will be cautious ahead of that.

Euro zone manufacturing PMI data released today showing activity in the region is still sluggish.