Euro Higher in Asian Trading ahead of FOMC Meeting Tomorrow

By: Barbara Zigah

The common currency Euro gained slightly versus the greenback and Japanese Yen in Monday’s Asian trading, rebounding slightly from Friday’s fall which came as a result of renewed worries over the fiscal situation in Ireland. A Forex strategist in the United Kingdom maintains that while the common currency will remain under pressure from economic woes among Euro-zone countries, he noted that the currency has become less sensitive since the European Union committed to helping those countries that are cash-strapped. 

On Friday, the cost of insuring Irish debt from default rose to the highest price ever. As reported at 1:11 p.m. (SGT) in Singapore, the Euro traded against the greenback at $1.3069, a slight gain from Friday’s late trading in New York. Versus the Japanese Yen, the Euro traded at 11.03 Yen, up from 111.89 Yen on Friday.

Japanese markets are closed for trading today as a result of a national holiday, and market players are looking instead to the United States and any indications that the Federal Reserve will look to expand the current narrow policy of quantitative easing. One analyst suggested that the topic of conversation at the FOMC meeting tomorrow will likely be focused on the Japanese Yen, and concerns about further intervention by Japan’s Ministry of Finance.