The week that an appetite for risk returned amongst investors saw the USD end Friday’s trading down as confidence in Europe meant some of the riskier assets find favour.

Much of this weeks focus has been on Spain – home to a record 4.75 million unemployed, 48% of all 16 – 25 year olds without work with an economy that is now officially in recession, having contracted for the last 2 quarters. The 12 month and 18 month debt auctions held by Spain received a solid turnout with investors looking to purchase nearly 3 times as many 1 Year bonds offered and nearly 4 times as many available 18 month bonds. The key 2 year and 10 year auctions held on Thursday raised 2.54 billion Euros via surpassing the targeted 1.5 billion to 2.5 billion Euros. The benchmark 10-year bonds sold at a return of 5.743%, and whilst this is high, the solid turnout and the fact that the yields were less than the ‘unaffordable’ level of 6% gave hope to investors.

Boosting confidence in the Euro was the news that in Germany, the Ifo Business
Climate Index for April increased to a 9 month high at 109.9, up from 109.8 in March, beating an expected drop to 109.5. The Euro made gains on Friday, up 0.61% against the USD, trading at 1.3218.

The greenback found itself under pressure against most major currencies, down 0.66% against the safe haven Swissie and down 0.47% against the commodity linked Aussie.

The Australian Dollar benefited from the rise in commodity prices fueled by a weakened USD. Copper was up 1.76%, valued at 3.392 whilst Gold increased 0.14% on Friday, ending the day valued at 1643.65.

Boosted by renewed hope of consumer demand in Europe Crude Oil enjoyed a 1.32% increase, with a barrel trading at 104.08.

Monday is important for the EUR with manufacturing PMI released in the Eurozone.

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