The Euro Softened But The Yen Climbed &Nbsp; The Market Was Prudent Before The Spanish Budget Was Announced.

As the euro zone will face several key risk events in the next few days, investors will be cut short, Nick Bennenbroek, head of foreign exchange strategy at Wells Fargo in New York, said.

"The euro has been doing well in a few days," he said.

There is widespread widespread bias in the euro selling, and investors are now making profits on some of the gains, he added.

Euro exchange

Events that will take place in the next few days, including Spain's budget, will show the extent of government tightening, and the euro zone finance ministers' meeting is expected to increase the cumulative borrowing limit of two rescue funds.

A slash budget may ease the bond market.

"However, the reality is that slash measures will slow growth and cause problems for the future growth of the country," he said. "If the intensity of the budget section is weak, the bond market may fall, and the market participants are worried that the budget action is not enough to solve the country's fiscal problems."

In terms of market trends, this means that future volatility will increase, Schamotta said.

Despite the overall success of the Italy bond auction, yields on Italy and Spain bond yields continued to rise on Thursday, as investors turned to lower risk German bonds.

German Central Bank President Wiedemann warned that expanding the scale of the eurozone firewall can only delay the time, and the market is increasingly concerned about the size of the euro zone rescue fund.

Traders said the euro fell below 1.33 U.S. dollars, triggering automatic stop sales orders, after the EU executive committee announced that the business climate index showed a slight decline of 0.1%, while the industrial prosperity index deteriorated significantly.

Analysts say the euro is unlikely to break through the recent 1.30-1.35 dollar range.

Euro exchange

Wednesday is the last spot trading day of Japan's fiscal year ended March 31st.

But the flow of money from Japan's medium and long-term investment majors has forced the main currencies to bear on the yen. Market participants say exporters are selling dollars in a big way.

The US dollar fell 0.5% to 82.45 yen against the yen, after a slight low of nearly three weeks and triggering a stop loss after falling below 82.35/40.

But many strategists say the US dollar is expected to rebound against the yen as long as the next US data do not support recent worries about economic growth.

"There must be a lot of adjustment at the end of the month and the end of the season, but the more important pactions in the past 24 hours are buying bonds and selling stocks," says Geoff Kendrick, a Nomura currency strategist.

The growth related currencies, the Australian dollar, fell 0.1% to $1.0376 against the dollar, which was hit by concerns about the slowdown in China's economic growth.