By: Hillel Fuld
The EUR saw some decreases in Asia on Tuesday but most traders think the worst is ahead of us or the single currency. This comes as a result of a rescue package for Ireland failing to restore investor confidence In euro zone debt.
Many traders anticipate additional selling in the euro after Italian and Spanish 10-year bond yields increased by more than 20 basis points on Monday -- their biggest daily increase in over a decade -- emphasizing the lack of confidence in the 85-billion-EUR deal to help contain Ireland's debt crisis.
The euro has successfully managed to scrape small gains for now, however, helped by short-term oversold technical signs, the JPY's rebound on month-end corporate bids and a rise in the AUD following local data.
The euro ticked up to $1.3140 up merely 0.1 percent from late U.S. levels, but about 0.6 percent above a 10-week low of $1.3064 hit on Monday on EBS. It was hanging around the crucial 200-day moving average at $1.3128.