The euro rose against all of its major counterparts, only the Yen remained higher against the EUR. High demand for Spanish bonds boosted the Eur for third consecutive day taking the Eur/Usd pair to levels not seen since May 10, above $1.2900. The confidence in the Eur came after Italy Portugal and Greece also successfully raised funds earlier this week. Furthermore, investors are anticipating the results of the European banks stress tests which should be published toward next weekend July 23rd.
Currency investors turned away from the U.S. Dollar, today, as more weak data was published earlier before NY trading session. Lower than expected Producer Price Index came as another signal of a slowing U.S. economy raising fears for double dip recession. The data published today came in addition to negative Fed remarks about a possibly slowing recovery from yesterday, and other disappointing figures about the U.S. economy published this week. In respond, investors sent U.S. markets lower today after 7 positive trading sessions.
No further news is expected to be published today by the U.S. Investors should follow U.S. CPI figures published tomorrow, which are used these days to measure slowing or expanding economy. If outcome is worse than expected, the euro might continue its recent rally yet another day, although the Eur/Usd pair it already trading quite high and buying pressure should decline.