The EUR/USD pair ended a bullish session yesterday, where the pair extended the gains recorded this week after the optimism seen in the market yesterday sent the U.S. dollar to the downside and supported high yielding currencies to gain as investors’ appetite for risk improved.
Yesterday, the several bond auctions supported the pair to hold on to the gains, where the Greek bonds saw strong demand while yields retreated slightly; however, the pair surrendered then some of the gains after the European Central Bank reported that overnight deposits rose this week to all-time record.
Today, the pair is expected to be very volatile and to move in line with the general sentiment, where optimism could support the pair to extend the gains recorded yesterday, while pessimism should affect the pair and force it to decline.
With the lack of major fundamentals from theUnited Statesand the euro area region, the main focus will shift to the German bond auction, as investors will eye the demand as a start and then the yields.
The Federal Reserve will provide markets with the Beige Book at 19:00 GMT.
Auctions:
Germany will sell bonds at 10:15 GMT.
Originally posted here
