Euro Surges as Spanish Bond Sales Draw Higher Investor Demand

The euro strengthened above $1.24 for the first time in almost three weeks as increased demand at Spain’s bond auction eased concern about Europe’s debt crisis.

The common currency pared gains as stocks retreated after a report showed the Federal Reserve Bank of Philadelphia’s factory index slumped in June. The dollar reached the lowest level versus the yen in three weeks as the number of Americans seeking jobless benefits last week unexpectedly rose. The Swiss franc strengthened against the euro after the nation’s central bank said deflationary risks have “largely disappeared.”

Note EU-Digest: basically the dollar is overvalued and has just a shadow of its past strength.

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