The euro shot up close to 180 pips against the USD in overnight trading after euro-zone leaders announced that they would take emergency steps to bring down borrowing costs in Spain and Italy. The EUR/USD is currently trading at 1.2590. Other riskier currencies benefited from the news as well. Both the AUD/USD and GBP/USD have gone up more than 150 pips since last night and are respectively trading at 1.0177 and 1.5661.
Main News for Today
EU Summit-All day
• Following last night’s announcement that EU leaders would work to bring down borrowing costs in Spain and Italy, investors will be closely watching for any additional developments out of the summit
• Any additional news on ways to combat the euro-zone debt crisis could lead to additional gains for the EUR
UK BOE Gov King Speaks-09:30 GMT
• The Bank of England Governor is expected to give a speech regarding further monetary easing steps to boost the British economic recovery
• If additional monetary easing is announced, the pound could extend last night’s gains against the USD
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