Here is the news that apparently caused the spike
This was a pretty timely announcement especially in these thin markets.
FX NOW! EUR/USD, EUR/JPY Flows - China VP Wang pledges "Concrete action" to help EU; EUR up
December 20, 2010 5:26:00 PM PST
* 21 Dec 10: 01:26(SGA) - FX NOW! EUR/USD, EUR/JPY Flows - China VP Wang pledges "Concrete action" to help EU; EUR up
Chinese Vice Premier Wang Qishan pledges "concrete action" to help EU with its debt problems. China supports efforts by Europeans officials to stabilise global markets. China will implement prudent monetary policy. China and EU should work together to push forward G20 decisions. Vice Premier Wang is speaking at opening of trade dialogue between China-EU. On FX, EUR/USD spikes to day highs of 1.3174, up from 1.3125-30 in thin markets, helped by positive comments from VP Wang on support for EU, in the midst of eurozone debt crisis. EUR/JPY hit highs of 110.20, up from 109.85-90, while AUD spikes to 0.9962 from 0.9920-25 on return of some risk appetite in thin markets. But EUR, EUR/JPY still vulnerable to downside. WL
This was a pretty timely announcement especially in these thin markets.
FX NOW! EUR/USD, EUR/JPY Flows - China VP Wang pledges "Concrete action" to help EU; EUR up
December 20, 2010 5:26:00 PM PST
* 21 Dec 10: 01:26(SGA) - FX NOW! EUR/USD, EUR/JPY Flows - China VP Wang pledges "Concrete action" to help EU; EUR up
Chinese Vice Premier Wang Qishan pledges "concrete action" to help EU with its debt problems. China supports efforts by Europeans officials to stabilise global markets. China will implement prudent monetary policy. China and EU should work together to push forward G20 decisions. Vice Premier Wang is speaking at opening of trade dialogue between China-EU. On FX, EUR/USD spikes to day highs of 1.3174, up from 1.3125-30 in thin markets, helped by positive comments from VP Wang on support for EU, in the midst of eurozone debt crisis. EUR/JPY hit highs of 110.20, up from 109.85-90, while AUD spikes to 0.9962 from 0.9920-25 on return of some risk appetite in thin markets. But EUR, EUR/JPY still vulnerable to downside. WL