Market News

With investors hopeful that the new Italian government, under Mario Monti, can push through the necessary reforms that will take the economy forward, the common currency Euro as well as commodity-linked currencies, gained some ground in Asian trading today.

the common currency managed to inch higher and hold there above the 1-month low, but traders remain skeptical that any bounce is sustainable as uncertainty over the Italian government’s ability to enact necessary reforms prevails.

Following a huge sell off in the world’s equity markets, precipitated by the widening yield spread in Italian sovereign debt, the common currency Euro slipped near to 1-month low against the U.S. Dollar.

Following news out of Italy late yesterday that Silvio Berlusconi would resign his position at the conclusion of the next parliamentary vote on budgetary reforms, the Euro was given some short lived respite from the relentless pressure.

The Swiss Franc remains under some pressure following interventionist comments made by the Swiss National Bank.

As the trading week begins, the Euro continues to move lower against the U.S. Dollar following the markets’ response to Greek Prime Minister George Papandreous’ pledge to resign and allow the formation of a new coalition government.

The Euro is under heavy pressure in Asian trading today, meeting resistance following a rebound triggered by Greece’s latest move.

The Euro has slipped further back and near to a 3-week slow in Asian trading today, as worries over the planned Greek referendum escalate.

Yesterday’s shocking announcement in Greece pushed the Euro to a 3-week low versus the U.S. Dollar, and most analysts believe that the single currency could slide further ahead of the Eurozone’s G-20 meeting.

With investors worried that the Bank of Japan will again intervene to curtail the meteoric rise of the safe haven currency, the Japanese Yen has steadied against the U.S. Dollar in Asian trading.

Earlier today, it was reported that the Bank of Japan had intervened in the currency, sending the safe haven 5.1% lower against the U.S. Dollar to 79.49 Japanese Yen. As reported at 5:40 a.m. (GMT), the USD/JPY pair was trading lower at 75.8250.

A relief rally in Asia drove the Euro to a 7-week peak in early trading, though the single currency has since beat a slight retreat.

Now that the Eurozone’s leadership have finally reached an accord which calls for, among other things, a 50% write-down of private Greek bondholder debt the common currency struck a 7-week high against the U.S. Dollar in Asian trading.

Traders had, up until recently, been hopeful that the leadership was finally in the process of taking serious measures to address the growing fiscal problems. But that hope was dashed yesterday afternoon.

In Asian trading, the Euro slipped against the U.S. Dollar but remains close to a 6-week peak struck on Monday.