Market News

As the trading week begins, the Euro continues to move lower against the U.S. Dollar following the markets’ response to Greek Prime Minister George Papandreous’ pledge to resign and allow the formation of a new coalition government.

The Euro is under heavy pressure in Asian trading today, meeting resistance following a rebound triggered by Greece’s latest move.

The Euro has slipped further back and near to a 3-week slow in Asian trading today, as worries over the planned Greek referendum escalate.

Yesterday’s shocking announcement in Greece pushed the Euro to a 3-week low versus the U.S. Dollar, and most analysts believe that the single currency could slide further ahead of the Eurozone’s G-20 meeting.

With investors worried that the Bank of Japan will again intervene to curtail the meteoric rise of the safe haven currency, the Japanese Yen has steadied against the U.S. Dollar in Asian trading.

Earlier today, it was reported that the Bank of Japan had intervened in the currency, sending the safe haven 5.1% lower against the U.S. Dollar to 79.49 Japanese Yen. As reported at 5:40 a.m. (GMT), the USD/JPY pair was trading lower at 75.8250.

A relief rally in Asia drove the Euro to a 7-week peak in early trading, though the single currency has since beat a slight retreat.

Now that the Eurozone’s leadership have finally reached an accord which calls for, among other things, a 50% write-down of private Greek bondholder debt the common currency struck a 7-week high against the U.S. Dollar in Asian trading.

Traders had, up until recently, been hopeful that the leadership was finally in the process of taking serious measures to address the growing fiscal problems. But that hope was dashed yesterday afternoon.

In Asian trading, the Euro slipped against the U.S. Dollar but remains close to a 6-week peak struck on Monday.

Hopes that the Eurozone’s leadership has moved closer to finding resolution to the debt crisis plaguing the region has given the Euro some support, though the single currency did slip lower versus the U.S. Dollar on some light profit taking.

A deep divide among the Eurozone’s policymakers has put pressure on the common currency during the Asian trading session, though the Euro has held hard to earlier gains the outlook appears rocky.

Ongoing doubts over the Eurozone’s policymakers’ ability to create a plan which will help to stop the Eurozone crisis are putting significant pressure on the common currency

The Euro gained some ground in the Asian trading session after taking a fall on Monday when Germany's policymakers threw cold water on a quick resolution to the Eurozone crisis.

The common currency continues to hold onto most of last week's gains and is poised for more as investors pinned their hopes on the European Union's policymakers, that a decisive response to the Eurozone's debt worries will be addressed later this week.