The Euro surged 1 percent against the greenback to the day’s high of 1.3655. Traders and investors maintain high expectations from the Spanish government bond auction. The analysts expect high demand for Spanish bonds and foresee substantial aid for Ireland in near future.
The British Pound reached the day’s high of 1.5975 against the US dollar. Russian and Asian traders were the major contributors in the surge of the Pound Sterling.
The pair EUR/GBP reached their highest since the last week at 0.8552 versus the US dollar in start of the European session however settled down around 0.8543 later in the session. The pair is likely to find resistance at 0.8637 and support is considered around the level of 0.8473.
The Australian dollar also jumped up to 0.9903 against the greenback in overnight trading session.
A team of representatives from International Monetary Fund and European Central Bank have gathered in Ireland to take decision for the country’s sovereign debt problem. According to European Union economy commissioner Olli Rehn, funds can be generated from European Financial Stability Facility for Ireland and the main focus of generated finances would be bring stability into Irish banking sector.
Strategist Joseph Capurso from Commonwealth Bank commented, “I suspect Ireland will take some sort of aid package this week or next week and that’ll probably see the euro make up some gains in the near term.”
Other than positive developments on Ireland’s debt crisis which strengthened the Euro, the US Federal Reserve’s monetary policy easing measure to control inflation in US has been further keeping the greenback under pressure.
