Market News

The Euro firmed above the recently struck 2-week low after Spain’s government revealed a 2013 budget that many believe is a move towards stabilizing its finances.

See how economic turmoil in Spain and anti-austerity protests are affecting the global markets.

In Tokyo, the EUR/USD was trading at $1.2899, close to Tuesday’s low and down nearly 2% from the 4-month peak struck last week. Analyst say that support for the EUR/USD pair is seen at around $1.28

The Euro edged higher against the U.S. Dollar in the Asian trading session following Monday’s fall to a 1-week low triggered by growing worries over Spanish debt and the government’s laissez faire attitude toward help.

In Asian trading, the EUR/USD remains close to the low struck last week with investors concerns over what’s ahead for Spain putting pressure on the Euro, which fell to $1.2931, a decline of 0.3% and close to the $1.29195 low struck on Thursday.

The U.S. Dollar gained a reprieve against the Euro as disappointing PMI data released yesterday showed that business activity in the Eurozone remained weak in spite of efforts by the central bank.

The response to the Bank of Japan’s intervention yesterday was short-lived, and following profit-taking traders are already pushing the safe haven currency higher against the U.S. Dollar during the Asian trading session.

As many had expected, the Bank of Japan (BOJ) earlier today intervened in the Yen’s rise following the U.S. central bank’s easing moves last week which pushed the Japanese currency into unwelcome territory.

As reported at 1:18 p.m. (JST) in Tokyo, the U.S. Dollar was trading at 78.57 Japanese Yen, falling from a high of 78.93 Japanese Yen struck on Monday and well above the 7-month trough of 77.13 Japanese Yen struck last Thursday.

The U.S. Dollar Index continues to hold close to a multi-month low and analysts believe the pressure on it will continue to remain, following the Fed’s announcement last week that they would embark on an open-ended round of economic stimulus.

After Ben Bernanke and the U.S. Federal Reserve Bank announced a new and much more aggressive effort to stimulate the U.S. economy and job creation, the U.S. Dollar Index once again touched on a 4-month low versus a basket of currencies, striking 79.134 .DXY.

The Euro continues to hold near to a recently struck 4-month peak, and after rallying on the news that the German Constitutional Court upheld Germany’s participation in the E.U. bailout fund.

Following a warning of a possible downgrade from Moody’s credit ratings service, the U.S. Dollar Index fell close to the 4-month low of 79.87 .DXY, trading at 1:15 p.m. (JST) at 79.784 .DXY during the Asian trading session.

During the Asian trading session, the Euro held close to a 4-month high versus the U.S. Dollar, the rally subsiding somewhat as traders exercise caution ahead of Germany’s court ruling regarding the bailout fund and the U.S. Fed’s decision on easing.

The Euro slipped versus the U.S. Dollar during the Asian trading session earlier, but holds close to a 4-month peak as traders speculate that Friday’s dismal labor report out of the U.S. will finally prompt the Federal Reserve to launch additional stimulus measures.