The euro rebounded during the US trading session after briefly breaking below the key $1.30 level for the first time in two months during the European session. The single currency was under pressure as concerns over Spanish debt resurfaced when Spanish government-bond yields rose above 6 percent. With high borrowing costs, investors are worried about Spain’s ability to meet deficit-reduction targets.
Going into the North American trading session, a better than expected March US retail sales report lifted market sentiment. EURUSD clawed back all earlier losses and gained 150 pips rising up to 1.3146. However, euro remains vulnerable, depending on news out of Europe on Spanish debt.
GBPUSD moved higher on better risk sentiment , climbing from an early low of 1.5818 to a US session high of 1.5899. Gains were limited as the focus turns to UK inflation data due on Tuesday.
EURJPY tracked the EURUSD higher , climbing to 105.71 from 104.60.
USDJPY was on the downside today, falling further in New York trading to 80.28, the lowest level since February 29.
USDCHF reversed redirection in the US session, dropping to 0.9139, off an earlier two-month high of 0.9250. Dollar softened across the board as risk appetite picked up following better than expected US retail sales data.
Crude oil prices were lifted from a sharp increase in U.S. retail sales for March and mainly higher U.S. equities. Crude briefly rose above $103.