6th August 2012
The euro made significant gains on the dollar this morning (August 6th) after the appetite for risk in forex trading was buoyed by stronger than expected data from the US jobs market.
Investors' moods were also improved as the European Central Bank (ECB) pledged to lower high interest rates for Spain and Italy.
After last week's ECB announcements, traders were initially unimpressed, but most now believe something positive will happen even if it will take until next month to materialise.
According to Reuters, the single currency also gained ground in Asia as bearish bets on the euro were trimmed.
Stop-loss bids at levels above $1.2400 kicked in and helped the euro rise to $1.2444 - its highest price against the dollar since July 5th.
Immediate resistance for the currency is though to occur at around $1.2478, which will represent a 61.8 per cent retracement of its drop since mid-June when it reached a $1.2750 peak.
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