Market News

The Euro and the Pound Sterling are both under pressure as investors speculate that the European Central Bank and the Bank of England will take up a more accommodative stance later today.

The common currency edged lower against the greenback in Asian trading on Wednesday as investors speculate that the European Central Bank will take a more dovish stance at their rate setting meeting tomorrow.

Both the U.S. Dollar and the Euro slipped in Asian trade as dismal economic data raised investors’ expectations of a more accommodative stance from both the Federal Reserve and the European Central Bank.

The Euro slipped in Asian trading today, giving up some of the gains made on Friday, which wound up being the largest single day rally in nearly eight months and attributed primarily to the euphoria following positive news from the E.U. Summit.

The Euro is poised to have its largest 1-day rise in nearly eight months as E.U. leaders are expected to announce later today that they have agreed to create a common supervisory body which will oversee the Eurozone’s banks and permit them to recapitalize directly via the EFSF and not through governmental channels.

The common currency remains on hold close to a 3-week trough against the U.S. Dollar but a sell off is capped as investors are cautiously optimistic of a surprise to the upside from the E.U. Summit which starts later today.

The common currency edged higher in Asian trading today after striking a 2-week trough yesterday, but analysts say that gains were capped as hopes that the upcoming E.U. summit could offer any positive outcome were dashed.

The Euro was holding close to a 2-week trough against the U.S. Dollar during the Asian trading session as investors’ expectations of a fruitful outcome to the E.U. summit fade.

In Asian trading, the U.S. Dollar extended earlier gains as its appeal as a safe haven status increased as investors’ concerns over the Eurozone crisis and a global slowdown weighed heavily on risk appetite.

The U.S. Dollar steadied close to a 1-week peak against a weighted basket of major currencies finding support ahead of a downgrade by Moody’s of sixteen major global banking firms, including Citibank, JP Morgan and Deutsche Bank.

In Asian trading, the U.S. Dollar stayed above a 1-month trough against a weighted basket of major currencies despite the announcement from the Federal Reserve yesterday that they would extend the Operation Twist program and would consider additional easing if economic conditions warranted.

In Asian trading, the Euro slipped against the U.S. Dollar but managed to hold onto the majority of gains made on Tuesday. Investors’ focus is squarely on Washington, D.C. and the U.S. Federal Reserve where the FOMC will be making an interest rate decision later today.

The Euro’s typical volatility was clearly in evidence as investors put any lingering relief over Sunday’s Greek pro-bailout vote to rest and focused instead on Spain, where a debt auction of 10-year benchmark bonds saw yields rise to 7.3%.

Relieved investors helped to give the common currency a boost which briefly struck a 1-month peak against the greenback following the election outcome in Greece which supports the Euro.

The Euro edged higher in Asian trading as investors have pinned their hopes on central banks to contain potential repercussions that could arise from the outcome of Sunday’s Greek election.