By: Barbara Zigah
In Asian trading today, the common currency Euro recouped earlier losses against the U.S. Dollar, yet investors remain jittery following a rise in the yields on U.S. Treasury instruments. As reported at 12:02 p.m. (JST) in Tokyo, the Euro traded against the greenback at $1.3617, a .3% rise from late Friday trading in New York. Major support is seen at $1.3535 to $1.3540. The rise in the Euro is being attributed to an influx of Asian buyers who are coming back into the marker after their lunar new year celebration.
Some analysts see the Euro continuing to slide from the 12-week peak struck last week as a result of the recent comments issued by the ECB President, Jean Claude-Trichet, who took a softer line on inflation than was expected. Some market players expect the Euro to feel the effects of the combined efforts by the French and German governments to create a comprehensive reform package aimed at addressing the Eurozone’s fiscal crisis. It appears that markets have grown complacently optimistic with recent efforts by ECB policymakers, forgetting that there are still key issues needing to be hammered out and that not all nations are in favor of the current proposals.