The Euro slipped in Asian trading today, giving up some of the gains made on Friday, which wound up being the largest single day rally in nearly eight months and attributed primarily to the euphoria following positive news from the E.U. Summit. As the trading week begins, investors will have to look for a new reason to continue that rally.
As reported at 10:16 a.m. (JST) in Tokyo, the Euro was trading at $1.2621 against the U.S. Dollar, a decline of 0.3% and moving further from the high of $1.2693 struck on the EBS trading platform on Friday, which was a 1.7% gain in the EUR/USD pair. The EUR/JPY pair dipped 0.3% earlier, well off Friday’s huge surge of 2.2%, trading recently at 100.69 Yen.
Sentiment is mixed moving forward, with some market players questioning the Euro’s sustainability in the absence of fresh impetus, and others expecting that the rally could continue. One analyst who is firmly bearish on the Euro said that if investors were using the news of improved Italian and Spanish sovereign bond yields as the reason for Euro buying, they should be aware that there was very low volume, suggesting that there is still a lack of conviction among investors.