The common currency Euro remains steady as the European Central Bank is set to make what many believe will be its second consecutive interest rate cut later in the trading day.
Market players remain cautiously optimistic that a resolution to the debt crisis will be provided by the Eurozone’s leadership, as they prepare to meet later this week for what is being deemed as a make-or-break E.U.
Standard & Poor’s rating agency has said that they might embark on the credit downgrade of the Eurozone members en masse, unless the Eurozone leaderships find a definitive solution to solving the debt crisis which has plagued the region for the better part of two years.
The Euro is seeing some positive momentum in the Asian trading session on investor hopes of a definitive resolution to the European debt crisis as a crucial summit begins later this week.
With market players biding their time as they await the U.S. non-farms payroll data which will be released later in the trading day, the Euro struggled to gain any footing in Asian trading. Economists expect that the U.S. Labor Department will report that 122,000 new jobs were created in November, and that the unemployment rate will be unchanged at 9.0%; the earlier released ADP data portended a positive outcome, but its never a certainty that the U.S. report will trend exactly the same.
The Euro received a major lift yesterday following the announcement that the major central banks would coordinate efforts to ensure that there would be no dearth of global liquidity as a result of the ongoing Eurozone crisis.
The markets’ continuing skepticism as to whether a possible solution to the Eurozone debt crisis will be found by the region’s finance ministers meant that the Euro remained under pressure in Asian trading
With investor hopes still pinned on the Eurozone’s leadership to craft a solution to the ongoing debt crisis saga, the common currency moved higher against the U.S. Dollar in Asian trading, consolidating Monday’s gains.
Investor’ short covering helped to push the Euro higher earlier in the in Asian trading following an initial and uncredited report in an Italian newspaper which said that the International Monetary Fund was arranging an assistance package for Italy.
The Euro continues to suffer the aftershocks created when Germany’s sovereign bond auction failed to sell out.
The U.S. Dollar saw broad gains against major currencies in the Asian trading session, as investors again sought refuge in the safe haven assets.
Following news of a victory for Spain’s center-right opposition party, cautious optimism helped to buoy the Euro in Asian trading. The People’s Party is expected to bring in more austerity measures, necessary for the country to restore market confidence.
The Euro struck a fresh 5-week low against safe haven currencies in Asian trading today as investors shunned the common currency.
The Euro fell to a new 1-month low versus the safe haven U.S. Dollar and Japanese Yen in Asian trading day as contagion worries escalate following the disappointing outcomes of Italian and French bond auctions.
The Euro continues to be under pressure in Asian trading, following yesterday’s rise in bond yields at the Italian and Spanish debt auctions, evidence which highlights the challenges that the Eurozone faces even as it tries to reassure investors that the debt crisis is containable.