Forex Pros – The euro erased early losses against the U.S. dollar on Thursday, edging up to a five day high after an auction of Spanish government debt attracted strong demand. EUR/USD clawed up from 1.3089, the daily low to hit 1.3146 during European morning trade, gaining 0.12%. The pair was likely to find support at 1.2961, Wednesday’s low and resistance at 1.3324, the high of January 5. Spain sold the maximum targeted amount of EUR3 billion of five year bonds in its first debt auction of the year. The Bank of Spain said the Treasury sold the bonds at an average yield of 4.5% compared with 3.5% at the most recent auction in November. The single currency was also supported after German Finance Minister Wolfgang Schaeuble said on Wednesday that euro zone countries were working on a “comprehensive package” to solve the bloc’s debt crisis, which could be agreed by February or March. The euro was also higher against the pound, with EUR/GBP gaining 0.25% to hit 0.8351. Later in the day, the European Central Bank was to announce its benchmark interest rate while the U.S. was to release a flurry of data, including a key weekly report on initial jobless claims as well as data on producer price inflation and the country’s trade balance.

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