The Euro continued to mark small gains as investors’ risk appetite increased following the earlier report of unexpectedly good Australian growth Nonetheless, Euro-Dollar traders remain wary ahead of tomorrow’s meeting of the European Central Bank’s policy setting committee. Analysts recently polled expect that the ECB will hold rates at the current level and keep monetary policy as is, but there is still hope that the growing calls for an ECB “intervention.” Yesterday, IMF chief Christine Lagarde added her name to the list of officials who are calling for a more accommodative stance from the ECB in order to spur growth in the Eurozone. At the very least, the Euro could find some support from even the hint of future easing from ECB president Mario Draghi.
As reported at 12:24 p.m. (JST) in Tokyo, the EUR/USD pair was trading at $1.2493, a gain of 0.3% and markedly improved from Friday’s 2-year low of $1.2288. Analysts point out that strong resistance lies at $1.2545; the EUR/USD pair failed to breach that price yesterday. The Euro is also higher against the safe haven Japanese Yen, up 0.4% to trade at 98.36 Yen, moving well off last week’s decade-long low of 95.59 Yen.