Germany’s debt auction sold EUR 4.057bn of 10-yr maturity at an average yield of 1.93%. The target was of EUR 5bn. Portugal sold the targeted €1 bn at a yield 4.346% (versus previous 4.873%). Meanwhile, the ECB seems to be buying Spanish and Italian bonds.
The Dollar Index has just reached 80.0 level in a daily rise of 0.364%. The EUR/USD fell below 1.3000 key support and reached a daily low at 1.2976, while the GBP/USD returned to 1.5600 psychological level. The USD/CHF heads to retrace yesterday’s losses and come back to 0.9400 and the AUD/USD is also falling, 50 pips since European session high 1.0373, after a buying exhaustion since December 29.
The Japanese Yen remains strong and although the USD/JPY is retracing the European morning losses, the sentiment shouldn’t change.