By: Sara Patterson
After a two day Bank of Japan meeting, the US dollar hit an 11 month high against the Yen, with the Dollar Index hitting 79.981, which is also a 7 week high for the currency pair. Due to this rise, gasoline and auto sales may bring the dollar even higher so that it may test the 83 Yen level. While the economy in the US may soon be booming, the EuroZone economy is slipping into a recession and traders are continuing to be cautious.
There may be some profit-taking in advance of the expected announcement by the Federal Reserve later today that should mention the continued strengthening of the US economy.
In the Eurozone, the common currency remains near a one-month low, hovering around $1.3135. An analysis by the European Commission concluded that the upcoming reforms can set Greece on the proper road to recovery, but that in order for the policies to work Athens has to behave until 2030. The new program can keep Greek debt sustained, however there are risks involved especially when the time frame is over 15 years. The analysis states that it is uncertain if Greece can return to the market at the end of the program.