EUR USD (1.4160) Those searching for the reason for the euro’s sudden spike in overnight trading probably needn’t look any further than a headline in this morning’s Financial Times – ‘China to buy Europe bail-out bond’. Although it should come as no surprise to investors, as Asia’s fund managers were already eager buyers at the first two EFSF bond auctions. Nevertheless China seems to have reconfirmed its stance on eurozone investment, and euro-bears were caught off guard. The reason for their earlier confidence in selling the euro tended to revolve around the funding crisis in Greece. Yesterday the country’s prime minister called for a public consensus to implement the proposed austerity measures.
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