Market News

Bond sales to be held later today by the highly-indebted Portuguese government have likely kept many market players on the sideline; nonetheless, in thin Asian trading, the Euro has managed to extend the gains from its earlier rebound.

In Asian trading today, the common currency held close to the 4-month low struck yesterday, even after the Japanese government reported that it would buy approximately 20% of the European rescue fund bonds that will be sold later in the month which are intended to help Ireland out of its financial predicament.

Just as last week, the common currency Euro struck a 4-month low versus the U.S. Dollar in Asian trading on renewed worries over Eurozone peripheral debt. As reported at 2:41 p.m. (EST) in Sydney, the Euro at one point in the session slipped against the greenback to $1.2860 on the EBS trading platform, before trimming losses and rebounding to $1.2908.

With investors expecting further evidence that the American economy is recovering steadily, the common currency slipped against the U.S. Dollar, striking a new 4-month low in Asian trading today.

The U.S. Dollar steadied against major currencies in Asian trading following yesterday’s release of an exceptional ADP employment report which showed that 297,000 non-farms related jobs were added to the payrolls in December

With evidence suggesting that the United States is finally on the path to sustainable economic recovery, the U.S. Dollar held firm against major currencies in Asian trading today.

Strong German labor figures for 2010 drove the euro back up above the dollar in Tuesday morning trading.

The forex markets are pretty steady in the last day of 2010. Euro got a lift on short covering in crosses as well as by comments from German Chancellor Merkel. Merkel said in an advance text of new year speech to the nation that Euro is far more than just a "currency", but the "foundation" of German economy. She urged that "we must strengthen the euro" as "Europe is in the midst of a great test." The common currency is seen noticeably higher against Swiss Franc and Australian dollar. Short covering in these two deeply oversold crosses helped lift Euro higher against dollar and yen and extended EUR/GBP's rebound.

The USD declined on Thursday, hitting a seven-week low point versus the Japanese currency and a 28-year low against the AUD currency after traders took falls in U.S. bond yields as a cue to get rid of it.

The USD became stable on Wednesday after a sharp increase in U.S. Treasury yields assisted its recovery from a sharp decline vs the euro in a yo yo session the previous day marked by thin year-end flows.

The EUR experienced a sharp increase as bears were forced to abandon their positions on Tuesday while the USD came under agressive pressure to sell, hitting a three-week low point versus the Japanese currency and a seven-week low against the Australian dollar.

The AUD declined on Monday after China's central bank increased rates over the weekend, and some analysts say chances of more tightening by China could cause investors to sell the Aussie following the year-end holidays.

The EUR stood its ground on Friday after making a comeback from an all time low versus the Swiss franc and a three-week low vs the dollar.

The European currency enjoyed a comeback in Asia on Thursday, having reached an all time low againt the Swiss franc overnight, with traders finding increasing buying interest emerging from players in the area specifically central banks.

The Euro is holding steady in Asian trading today following yesterday’s plunge precipitated by dual announcements from Moody’s and Fitch’s, the rating agencies, that they may, respectively, downgrade Portuguese and Greek debt.