The market is recovering after heavy volatility and losses since the start of the week as investors are jittery and wary that Europe will not be able to contain the crisis after the EU summit failed to deliver anything new.
It is surely not a change in the overall sentiment, the market is just retrenching after the heavy losses and after the decline was seen overrated for this week. The EUR/USD is recovering and rising above $1.30 again supported by better than expected data and eased contraction in December alongside a good bond auction from Spain.
The Spanish bond auction went well and the nation sold 6.0 billion euros of debt strongly above 3.5 billion euros maximum target as the yields declined. The EUR/USD is trading around $1.3028 higher by 0.3% from the opening of $1.2983 and the low at $1.2958 and set the high at $1.3038.
Surely it is needed to see some relief with the mixed outlook, fears and evident jitters as traders start to prepare for the year-end holidays and they close their books for the year. The dollar also moved lower with the correction and with a slight relief especially and that further helped equities and commodities move lower.
The USDIX is trading around 80.28 down 0.31% after reaching as high as 80.62 from the opening of 80.52 and set the low of 80.23.