The Euro continued to extend yesterday’s gains and marched to a 1-week high in Asian trading as sellers pared their huge bets ahead of a G7 conference call. While there remains a great deal of skepticism that the outcome of the emergency G7 tele-conference could yield anything of positive note, investors say they are exercising caution, “just in case.”
As reported at 12:48 p.m. (JST) in Tokyo, the Euro was at $1.2530, a gain of 0.3% from late New York trading. Earlier, it had been trading at a session high of $1.25429 which is just a few pips off the week’s high and well off the low of $1.2288 struck on Friday. Analysts say that resistance is at $1.2545 and beyond that $1.2570, but if the EUR/USD pair is able to break and close above $1.24565, it might see a bit of a recovery.
While expectations for the G7 outcome are already minimal, traders say that at the very least they might be able to pressure the ECB. Markets will be turning their focus to the European Central Bank which meets tomorrow; a recent consensus of economists forecasts that the ECB won’t make any moving toward easing at this time, but market players are hopeful that Mario Draghi, the ECB president, will surprise with a preemptive move, much as he did when he took on the position last year.