By: Barbara Zigah
With the euphoria of the Greek vote for austerity ebbing, the common currency’s rally appears to be losing some momentum. As reported at 2:34 p.m. (JST) in Tokyo, the Euro was trading against the U.S. Dollar at $1.4514, a gain of 0.1% from late trade in New York but retreating from the $1.4539 peak at the height of investor jubilation yesterday. Where the Euro was earlier finding support was from Asian central bankers who bought heavily after profit taking pushed the common currency down to $1.4467.
The euro is also getting some support against the Australian Dollar and Japanese Yen, with some investors noting that the markets have started to rebuild their long positions in advance of next week’s policy setting meeting of the European Central Bank. Naturally, the press meeting which follows will draw most of the focus, but Jean-Claude Trichet, the ECB head is expected to take a hawkish stance. Markets have already factored in the likelihood of a rate increase, but investors will look for clues from M. Trichet to determine whether more increases could be forthcoming. Earlier this week, it was reported that Eurozone inflation remains firmly entrenched at 2.7%, above the ECB’s 2% target.
Euro Seen Losing Momentum as Euphoria Wanes
Barbara Zigah
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About Barbara Zigah
After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.