Euro Posts Gains, but Trend Remains Bearish

The euro jumped today on the speculation that the European Union would support its most indebted nations. The euro resumed its decline later as the traders weren’t convinced.
The speculations suggested that Ireland’s government discussed with the EU leaders the possibility of the bailout for Ireland. The EU officials dismissed such suggestions as mere rumors. The traders weren’t much convinced by the attempts of the EU leaders to improve confidence in the European economy, therefore the euro’s gains were limited.
The decline of the stocks and the commodities also curbed the gains of the shared 16-nation European currency. The Standard & Poor’s 500 Index went down 1.3 percent, while the 
Reuters-Jefferies CRB Index of raw materials slumped as much as 3.6 percent.
EUR/USD closed at 1.3692 after it opened at 1.3667, reached the intraday low of 1.3575 and the intraday high of 1.3775. EUR/JPY opened at 112.72 and closed at 112.87, following the decline to 111.05 and jump to 113.38.

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