By: Barbara Zigah

The common currency continues to find some support from hopeful investors as the second of the week’s European Union summits looms. In trading in Asia, the Euro slipped against the U.S. Dollar but remains close to a 6-week peak struck on Monday. Investors recognize that this is a do-or-die situation for the European policymakers and are convinced that a comprehensive and credible plan will be forthcoming by tomorrow. As reported at 1:08 p.m. (JST) in Tokyo, the Euro was trading at $1.3917, a decline of 0.1%, and within striking distance of the $1.3957 peak struck on Monday on the EBS trading platform. Resistance is seen near$1.3989, and beyond that at $1.4040.

In the Eurozone, European policymakers have said that they are close to finalizing the terms of a deal which would recapitalize the Eurozone’s banks, ensuring that they will remain liquid even in a worst case scenario. Also being fine-tuned are details regarding the Eurozone’s emergency rescue fund, the EFSF, which had originally caused a division between Germany and France.

The Euro’s recent rise has pressured the U.S. Dollar; the U.S. Dollar Index, a measure of the greenback’s value versus a weighted basket of major currencies which includes the Euro, held at 76.112 .DXY, close to a 6-week trough of f 75.985 .DXY struck earlier this week. The greenback is also hovering close to a record low 76.08 Japanese Yen struck last week and was traading earlier at 76.08 Yen.