European session: the euro rose
20.12.2011, 13:59

European session: the euro rose

Data:

07:00 Germany PPI (November) 0.1%

07:00 Germany PPI (November) Y/Y 5.2%

09:00 Germany IFO business climate index (December) 107.2

11:00 UK CBI retail sales volume balance (December) +9%


The euro rose  after an Ifo report showed German business confidence unexpectedly increased and borrowing costs fell at a Spanish bill sale.

The U.S. currency fell on reduced demand for a refuge.

The pound gained as U.K. consumer confidence rose from a record low.

The euro reached a one-week high versus the dollar after the Ifo institute’s business climate index for Germany, based on a survey of 7,000 executives, rose to 107.2 this month from 106.6 in November, boosting optimism that Europe’s largest economy will avoid a recession next year. Economists expected a drop to 106.

Europe’s currency was supported after Spain sold 5.64 billion euros of three-month and six-month bills, exceeding a maximum target of 4.5 billion euros. The average yield on the three-month debt dropped to 1.735 percent, compared with 5.110 percent when the securities were last issued on Nov. 22. European finance ministers yesterday boosted their efforts to counter the region’s debt crisis by pledging extra resources for the International Monetary Fund.

“It’s a slight squeeze higher for all risky currencies after the Spanish auction was better than expected,” said Elsa Lignos, a currency strategist at Royal


EUR/USD: during european session the pair rose in $1.3080 area.

GBP/USD: the pair has grown above $1.5600.

USD/JPY: the pair remained below level Y78.00.

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