20121008chart.jpg


FUNDAMENTALS**

The euro also soared to a two-week high versus the greenback and yen after the U.S. jobs data increased investors' confidence about the U.S. economy and prompted them to buy currencies that offer higher returns than the dollar and the yen.

Market participants are still awaiting Spain's request for aid, a move that would prompt the European Central Bank to buy its bonds and lower the country's borrowing costs. That would be be viewed as positive for the euro.

ECB President Mario Draghi said on Thursday that everything was in place for the central bank to buy the bonds of struggling euro-zone countries like Spain and conditions linked to it need not be punitive.

Spanish 10-year debt yields have declined - a positive sign - and the euro has rallied since the ECB announced its plan to buy bonds of debt-stricken countries, in anticipation of Spain eventually seeking financial assistance. But that positive momentum may not last.



** The views expressed above are that of a Reuters market analyst[article ID:nL1E8L56YI]. The views expressed are his own and not of the company. No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses. **