European shares enjoy a solid day to the upside

The major European indices enjoyed a solid day to the upside with the German DAX leading the way. A snapshot of the closing levels shows:

• German DAX, +1.70%
• France’s CAC +0.69%
• UK’s FTSE 100 +1.21%
• Spain’s Ibex, +1.25%
• Italy’s FTSE MIB, +1.49%

Yields moved lower in Europe as well today:

• Germany, 2.536%, -9.4 basis points
• France 3.349%, -12.6 basis points
• UK 4.739%, -17.0 basis points
• Spain 3.211%, -12.6 basis points
• Italy 3.698%, -18.2 basis points

As traders look to exit, the declines in the USD have seen large retracements, helped by the decline in their rates:

• EURUSD. The EURUSD is now down -0.24% and trading to new session lows. The price just give below its 100 hour moving average 1.0267, but has bounced back and trades between it and the 200 hour moving average at 1.03036 at 1.0282
• GBPUSD. The GBPUSD moved to a post CPI high of 1.23055, but has quickly reversed moving to a US session low of 1.2192. The current price trades at 1.2215 which is just below its 100 hour moving average of 1.22176. The close yesterday was at 1.22146.
• USDCHF: The USDCHF fell below the 200 hour MA at 0.91148 off the CPI, but has since bounced back higher and back above that MA. The high price moved up to test its 100 hour moving average at 0.9145 and found willing sellers against that level. With the price in between the 100 and 200 hour moving averages, the buyers and sellers battle it out but with a failed break to the downside as a negative for the sellers and a positive for the buyers.

This article was written by Greg Michalowski at www.forexlive.com.