The Euro got a boost from comments made by the European Central Bank as well as positive political news from Italy. The ECB yesterday pointed out again that it was prepared to move when necessary to control rising market interest rates, which one analyst at JP Morgan took to mean that the ECB could be ready to begin “a major easing offensive.” In Italy, despite Silvio Berlusconi’s attempted power grab, Enrico Letta, the current Prime Minister, won a Parliamentary vote of confidence.
As reported at 11:33 a.m. (JST) in Tokyo, the EUR/USD pair traded at a session peak of $1.3608, edging closer to the year’s high of $1.3711, before slipping back to $1.3581. The USD/JPY pair held near a 5-week trough at 97.14 Yen. The U.S. Dollar Index, the gauge by which investors measure the greenback’s relative strength, dropped close to its 2013 low.
Markets Wait for Break in U.S. Government Stalemate
The U.S. Dollar remained close to an 8-month trough during the Asian trading session today as the shutdown of the U.S. federal government enters its second day. Market players are hopeful that a comeback could be made for the greenback against its safe-haven rivals, but policy watchers are doubtful that either side will be able or willing to find common ground any time soon.