Euro Holds Steady near 11-Month Low

By: Barbara Zigah

The Euro managed to creep higher during the Asian trading session but still remains stubbornly close to an 11-month low which was struck on Wednesday. Market players cite ongoing worries over a Eurozone resolution as the primary reason for the sell-off. As reported at 11:54 a.m. (JST) in Tokyo, the Euro was trading against the U.S. Dollar at $1.2995, a gain of 0.1% but not too far from the $1.2945 low struck yesterday on the EBS trading platform; that was the lowest price for the pair since early January. Analysts point out that the next key support level will be around the year low of $1.2860.

The common currency Euro also edged higher against the Japanese Yen following yesterday’s decline which brought it within striking distance of the 10-year trough which was struck in October.

Investors are eyeing the release today of the European Central Bank’s monthly report for an indication in the common currency’s direction. However, given that only a week ago the ECB chief had said that the central bank had no intention of making more aggressive bond purchases, it is very likely that investors will be left disappointed. Yesterday’s Italian debt auction did little to reassure investors, as the yield on the 5-year treasury notes struck 6.64%, a new high during the Euro’s era.