The Euro moved lower but remained range-bound during the Asian trading session, as investors hold their positions ahead of the upcoming Italian sovereign debt sale and this weekend’s critical Greek vote, the latter of which will likely shape the Eurozone’s future. Earlier this week, yields on 10-year benchmark Spanish sovereign debt rose to a Euro-era high at 6.8% despite the government’s official request for bailout help as investors worry that the government’s rising debt loan will mean that debt markets’ access is blocked. Another factor which served to undermine Euro confidence was comments made about Italy’s potential borrowing costs by the Austrian finance minister who worried aloud that they might soon need a bailout, too.
As reported at 12:30 p.m. (JST) the EUR/USD slipped to 1.2481 a drop of 0.2% and range-bound between 1.2288 – a 2-year trough struck earlier in the month, and a 1.2672, a 3-week high struck Monday. Analysts expect the Euro to drift lower through the end of the week, with many investors wary enough to consider sitting on the sidelines until after the Greek elections. The EUR/JPY pair was trading relatively flat at 99.38 Japanese Yen, and analysts that the exporters will likely cap gains at around 100 Yen.