Successful Spanish and Irish Auctions Underpinning Euro

The Euro is trading better this morning and in a position tomove higher after the single currency got a boost following successful debtauctions in Spain and Ireland. Thesuccess of these auctions helped boost demand for higher risk.

The Euro is trading better this morning and in a position tomove higher after the single currency got a boost following successful debtauctions in Spain and Ireland. Thesuccess of these auctions helped boost demand for higher risk.

While this news is underpinning the Euro, it could rise evenhigher should this morning’s U.S.housing data show the economy is slowing. Later this afternoon, the FederalOpen Market Committee is expected to leave interest rates unchanged at 0 to.25% along with its T-Bond quantitative easing program. The size of the rallythis afternoon will be determined by the language contained in the FOMC’sstatement. If it’s perceived as softerthan expected, then look for a sharply higher Euro by the end of the day.

The chart indicates this market is headed toward adowntrending Gann angle from the 1.3334 top at 1.3174 today. On the downside,this market seems to be finding support on a .618 price level at 1.3049. A break back under this level will be a signof weakness.