European markets are going through gains on Thursday with investors confidence boosted by strong demand for on Spanish bonds, which dissipated fears about the country having to seek assistance by the EU. The Euro soared to 3-week highs.
Eurostoxx 50 Index adds 0.75% while the German DAX Index rises 0.6% and the French CAC index advances 0.9% by midday in Europe. In tehe UK, the FTSE Index adds 0.8%.
Spanish Treasury has found demand to sell EUR3.479 billion in long-term government bonds, at 4.9%, below the 5% maximum level the IMF and the EU had set to activate the assistance program planed to aid debt troubled member countries. The successful auction has eased doubts about Spanish debt and restored confidence on the Euro.
Euro rallies to 3-week high
EUR/USD pullback from yesterday's high at 1.2355 has found support at 1.2245 low ahead of the European session, and the pair has soared about 150 pips higher, to hit 3-weeks high at 1.2390 are,a boosted bu Spanish debt auction.
GBP/USD rally from 1.4505 low on Friday was capped yesterday at 1.4855, and the pair declined to 1.4645 low at European opening times, to rise 150 pips higher, on increased risk appetite to reach 1.4800 area at the time of writing.
The CHF has gone through a strong performance after the SNB affirmed that Swiss economy can cope with a strong Swiss Franc, and omitted comments about interventions to avoid excessive CHF strengthening. USD/CHF lost 200 pips to hit 5-week low at 1.1125, while the GBP/JPY lost about 230 pips to 4-week low at 1.6430, and the EUR/CHF dropped below 1.3800 to 1.3755 low, 20 pips short of all time low at 1.3734.
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