Market News

With investors expecting further evidence that the American economy is recovering steadily, the common currency slipped against the U.S. Dollar, striking a new 4-month low in Asian trading today.

The U.S. Dollar steadied against major currencies in Asian trading following yesterday’s release of an exceptional ADP employment report which showed that 297,000 non-farms related jobs were added to the payrolls in December

With evidence suggesting that the United States is finally on the path to sustainable economic recovery, the U.S. Dollar held firm against major currencies in Asian trading today.

Strong German labor figures for 2010 drove the euro back up above the dollar in Tuesday morning trading.

The forex markets are pretty steady in the last day of 2010. Euro got a lift on short covering in crosses as well as by comments from German Chancellor Merkel. Merkel said in an advance text of new year speech to the nation that Euro is far more than just a "currency", but the "foundation" of German economy. She urged that "we must strengthen the euro" as "Europe is in the midst of a great test." The common currency is seen noticeably higher against Swiss Franc and Australian dollar. Short covering in these two deeply oversold crosses helped lift Euro higher against dollar and yen and extended EUR/GBP's rebound.

The USD declined on Thursday, hitting a seven-week low point versus the Japanese currency and a 28-year low against the AUD currency after traders took falls in U.S. bond yields as a cue to get rid of it.

The USD became stable on Wednesday after a sharp increase in U.S. Treasury yields assisted its recovery from a sharp decline vs the euro in a yo yo session the previous day marked by thin year-end flows.

The EUR experienced a sharp increase as bears were forced to abandon their positions on Tuesday while the USD came under agressive pressure to sell, hitting a three-week low point versus the Japanese currency and a seven-week low against the Australian dollar.

The AUD declined on Monday after China's central bank increased rates over the weekend, and some analysts say chances of more tightening by China could cause investors to sell the Aussie following the year-end holidays.

The EUR stood its ground on Friday after making a comeback from an all time low versus the Swiss franc and a three-week low vs the dollar.

The European currency enjoyed a comeback in Asia on Thursday, having reached an all time low againt the Swiss franc overnight, with traders finding increasing buying interest emerging from players in the area specifically central banks.

The Euro is holding steady in Asian trading today following yesterday’s plunge precipitated by dual announcements from Moody’s and Fitch’s, the rating agencies, that they may, respectively, downgrade Portuguese and Greek debt.

The common currency reversed positions against the U.S. Dollar and the Japanese Yen in the Asian trading session when one official from the Chinese government endorsed the efforts being undertaken by the European Union to stabilize Eurozone financial markets. As reported at 1:49 p.m. (JST) in Tokyo, the Euro traded against the greenback at $1.3194, a session high; on Monday, the Euro struck a 2-week low. Against the Japanese Yen, the Euro was trading at 110.18 Yen, up from 109.90 Yen earlier.

The U.S. Dollar continues to strengthen against the common currency Euro as investors remain fearful that more Eurozone nations will finally acknowledge the difficulties they’re having working within their fiscal budgets.

The fallout from the Irish downgrade continues to push the common currency lower; today in Tokyo, the Euro slipped to a 2-week trough versus the U.S. Dollar, and appears vulnerable to further losses.