The euro sharply rebounded today as the European Union summit surprised Forex market participants as some positive results already came out, giving hope that the meeting would not consist of just empty talks.
The lawmakers eased loan term for Spanish banks, a move that may result in dropping yield for Spanish bonds. Additionally, Herman Van Rompuy, the President of the European Council, suggested allowing banks direct access to the European Stability Mechanism without involving government debt. Investors were skeptical about the summit and the signs that European chiefs are ready to take meaningful actions were a definitely pleasant surprise.
EUR/USD jumped from 1.2443 to 1.2583 and EUR/JPY surged from 98.85 to 100.05 as of 11:56 GMT today.
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