Forex: USD soars after European bond auctions (Barcelona) - The improved sentiment of 2012 translated in risk assets’ rallies may be coming to an end for now, as the USD regains buyers and is taking back the lost ground.

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.