Market News

In Asian trading on Monday the euro gained against the US dollar, rising 0.4 percent to $1.2438, the highest in a month, with investors showing renewed optimism after a non-farm payroll report that was surprisingly positive.

On the heels of a disappointing announcement from ECB President Mario Draghi on Thursday, US stocks continued their downward spiral as investors faced dashed hopes that the European Central Bank would take swift action to resolve the region’s debt crisis.

US consumer spending is down, manufacturing has slowed and a disappointing NFP report is expected this week, but the Federal Reserve and its Chairman, Ben S. Bernanke showed restraint in its announcement on Wednesday, fueling consumer concerns and sending Wall Street steeply downward.

As the world awaits the ECB's announcement on Thursday, many are preparing for the worst and expecting the European Central Bank to disappoint.

Last week the US stock market saw its biggest two-day gain of 2012, but Monday’s trading saw a significant decline as investors wait anxiously for announcements expected from central banks later this week.

Despite predictions from some major financial analysts and news sources that the Euro is headed for a certain demise, Asian stocks have continued to rise, indicating strong consumer hopes to the contrary.

The common currency steadied during the Asian trading session, holding onto gains made on Thursday after Mario Draghi, the head of the ECB, vowed that he would do all within his power to preserve the Euro and prevent a Eurozone breakup.

The Euro’s mini rally ended during the Asian trading session, with some of Wednesday’s gains given back, as persistent Spanish doubts continue to pressure the common currency.

European stocks continue to fall while Spanish bond yields continue to rise on the concern of the European debt crisis that will affect global growth.

The Euro eked out some gains against the safe haven currencies as risk appetite was whetted in Asia following news that China’s preliminary PMI manufacturing data for July was better than expected.

In Asian trading, the Euro slipped close to a multi-year and historic lows versus the Japanese Yen and the Australian Dollar as investors’ fears over a Spanish default escalate.

The Euro continues to trend lower as worries over Spain’s finances send investors to the safe haven currencies; as reported at 1:12 p.m. (JST) in Tokyo, the EUR/USD was trading at $1.2269, a drop of 0.1% but holding above the 2-year low struck last week on the EBS trading platform.

The Euro held steady against the U.S. Dollar during the Asian trading session but continues to be under pressure following relatively pessimistic comments made by Angela Merkel, the German Chancellor, which rekindled concerns of the debt crisis there.

On Tuesday, Ben Bernanke, the Federal Reserve Chairman, in an address to the U.S. Senate’s Banking Committee, left markets disappointed with his vague comments that gave no clear indication that additional easing for the struggling U.S. economy would be forthcoming.

The Euro edged higher against the U.S. Dollar in Asian trading today as a spate of hedge fund buying triggered stop-losses.