By: Barbara Zigah
Following a deluge of sell orders, coupled with the latest report on U.S. labor data, in Friday’s trading in Tokyo, the Euro managed to edge back from lows hit earlier this week on the EBS platform. As reported at 3:14 p.m. (JST) in Tokyo, the Euro steadied at $1.4002 against the U.S. Dollar on the EBS platform, following yesterday’s loss of more than 1%. Versus the Japanese Yen, the Euro traded at 134.44 Yen; earlier, the Euro had dropped to 133.58 Yen, extending yesterday’s decline of nearly 2%.
According to one currency strategist in Hong Kong, the short term risk means it’s possible that there may be some correction in Euro trading, as investors believe that the Euro’s recent decline may have been more than warranted. Recent comments from Claude Trichet, the president of the European Central Bank, compounded selling pressure on the Euro, when he suggested that activity in the Euro Zone would remain weak at least until the year’s end. As investors expected, the ECB left the historic low benchmark interest rate for refinancing unchanged at 1%.
Investors are now shifting their focus to the upcoming G8 meeting, and watching closely the controversy spurred on by Chinese officials about the prospect of an alternative global reserve currency.
Euro edges Back on U.S. Labor Data Sell Orders
Barbara Zigah
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About Barbara Zigah
After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.