By: Barbara Zigah
As reality settles in, the Euro is finding itself under renewed pressure, as investors consider worries of growth woes and implementation risks for the Mediterranean nation. As reported at 12:22 p.m. (JST) in Tokyo, the Euro has now backed off of the near 2-week peaks struck earlier, and is trading at $1.3232, off the session high of $1.3293 yesterday; the EUR/USD has failed to breach the 100-day moving average at $1.3308. One strategist in Hong Kong says that investors had already priced in the good news and that there is essentially not much else left to buoy it. Three of the Eurozone’s parliaments must still grant approval of the Greek loan, which analysts expect will pass, but beyond those immediate worries many question whether or not Greece will be able to survive given the austerity and diminished growth prospects.
Elsewhere, the Japanese Yen also continues to decline against the U.S. Dollar, much as the Japanese government wanted, falling at one point by 0.3% to 79.961 Yen. Since early February, the Yen has lost nearly 5% of its value, much of it a consequence of last week’s easing measures by the Ban of Japan. Analysts expect that it will continue to gradually weaken further.