By: Barbara Zigah
Following news out of Italy late yesterday that Silvio Berlusconi would resign his position at the conclusion of the next parliamentary vote on budgetary reforms, the Euro was given some short lived respite from the relentless pressure. However, this morning in Asian trading, the Euro is still fighting chart resistance on a gloomy outlook. As reported at 12:18 p.m. (JST) in Tokyo, the Euro was trading against the U.S. Dollar at $1.3832, off a session high of $1.3859. Analysts point out that the Euro has struggled for nearly a week to break through resistance at $1.3850, and stop losses price at $1.3800 could pull the common currency lower.
Meanwhile, the Greek government is also working at a fevered pitch to ensure that they get the next tranche of bailout funds, needed to avert default. The infighting over the creation of a new coalition government continues, however, though the quick appointment of a new government could help to push the Euro higher.
Safe haven sentiment pushed the Yen higher against both the Euro and the U.S. Dollar, trading at 107.36 Yen and 78.00 Yen, respectively. One strategist in Paris said that as Yen positions continue to unwind, the Ministry of Finance could be compelled to intervene again.