The euro remained bullish for most of the European session yesterday, as investor hopes that the European Central Bank will soon step in to lower borrowing costs in Italy and Spain helped boost risk appetite. Today, euro traders will want to pay attention to the results of a German ten-year bond auction. If demand for German bonds remains high, investor confidence in the euro-zone economic recovery may increase, giving the euro another opportunity to gain against its main currency rivals. That being said, poor demand for German bonds may weigh down on the euro, causing it to give up some of its recent gains.
