Euro gains more in the midst of European debt crisis

Global equity prices and the euro pressed higher  two days before as investor confidence showed further signs of improvement. Despite there exists more stresses and strain facing the global economy  strong demand at auction of Irish and spanish debt  has caused to some extent the  euro gain against the dollar and yen  in currency markets. It gained high in two week's time.
Eure recovers as debt concern ease
Sterling gain after price inflation data help to ease concern about the outlook for inflation.The spanish government raised funds in open market was clearly a relief for the spanish and European policy makers.
Economic news from Germany received recently is also disappointing as per the europe's single currency.
A survey from ZEW economic think-tank indicate lowering investor confidence prompting concern over
peripheral debt vindicated core euro zone economies. Even if there is reason for panic the euro-zone bail
out package and ECB's latest measures to support bond and money  markets had not been sufficient to
stabilise confidence  in Germany.
The Euro inched higher against sterling although the pound gained stregth against the dollar as the more relaxed mood in the market over the eurozone sovereign debt outweighted  tame consumer price data.
The Economic news got  from the US is found to be hopeful for some reasons.
The Empire state manufacturing index  inched higher to 19.6 this month -this point to an index of growth
in the factory sector.
A different data showed a sharp drop in US import prices last month- the combination of subdued inflation
coupled with moderate growth provided a positive backdrop for Wall street equities.
In New York the S&P 500 rose 2.4%  while the Pan European FTSE Euro first 300 index gained 0.7% 
The broad decline in risk aversion was further illustrated by 10% drop in the Vix volatility index to25.8.
However credit market seems to have failed in gain made by equities. Greek credit default swap spread
widened 45 basis points to 795 bp according to Markit data, with spanish,portugese spread also widening.
On the corporate side,the Markit Traxx Europe index widened 3bp to 129.5 bp.
In commodities the benchmark US oil price climbed back above $77 a barrel .The greek downgrade
put demand for gold and the metal pushed about $1.235 per ounce.
Eurozone investors fears a weaker economy- Despite global investor  confidence  in the region European
investors believe that their economy in ensuing year. A survey indicated that 19% global investors opined
that  the euro would be up by the next year(7% in May). But with the eurozone investors slide to their
gloomiest outlook  for more than a year.Just 7% of fund managers believe that it would be up by the next
year compared with 23% in May. Those who expect improvement in earnings over the year slumped to
20% from 74%  in April. The investors are beignning to see the outlook behind 'euro' for Europe's upheaval.
The outlook for global economy is also not rosy regarding the next year.Only 24% of the respondents believe in the strengthier economy.Survey suggest buying opportunities good  with 38%.Global growth
expectations have been down and positioning  is more defensive.But investors shows no panic.