The Euro continues to hold near to a recently struck 4-month peak, and after rallying on the news that the German Constitutional Court upheld Germany’s participation in the E.U. bailout fund. Now, investors are looking to the U.S. Federal Reserve Bank’s decision on additional stimulus to give the green light for a continuation of the Euro rally, with a decision expected at 4:30 p.m. (GMT). The majority of market players are expecting some form of easing, and a disappointment from the Fed could see the Euro give up some of those recent gains.
As reported at 2:19 p.m. (JST) in Tokyo, the EUR/USD was trading at $1.2926, a gain of 0.2% from late trade in New York on Wednesday, and not far off the 4-month peak of $1.2937 struck immediately after the German court decision. Market players are buying back the Euro in a big way now that the latest stumbling block has been removed and the crisis seems on the brink of abatement.
With risk appetite improved, the Euro was also trading higher against the safe haven Yen, recently at 100.45 Yen and close to 100.64 Yen, the 10-week peak struck on Wednesday. The Euro is also coming off a 10-week high against the Pound Sterling; the EUR/GBP pair traded at 0.8028 Pounds yesterday, then retreated to 0.8018 Pounds most recently.