By TraderVox.com
Tradervox.com (Dublin) – The 17-nation currency increased against the Japanese currency after German Chancellor Angela Merkel showed support for the European Central Bank decision to deal with debt crisis in the region. The euro has gained for the last five days against all the sixteen major peers prior to a meeting between Angela Merkel and French President Francoise Hollande next week. The two will also meet Greek Prime Minister Antonis Samaras. The Japanese currency has decreased against most of it peers, declining to almost two-month low against the US dollar. Commodity related currencies increased as the Asian stocks appreciated.
Currency strategists have suggested that the recent euro advance might be signs of a changing trend as euro area leaders are seen to effective make decisions geared to solve the debt crisis. Investors are starting to show some confidence on the decisions taken by the ECB. The euro has increased by 0.5 percent versus the greenback, which is the highest weekly increase since the week ending July 27. The Japanese currency is set for a 1.4 percent weekly drop against the US dollar, which is the largest drop since June 22.
It has been revealed that the German Chancellor will meet France President one day before Greek Prime Minister’s visit in Berlin. The Italian Prime Minister Mario Monti will meet Merkel on August 29 while on September 6, Merkel will travel to Madrid to meet with Spanish Prime Minster Mariano Rajoy. The meetings are set to establish the necessary political atmosphere for the ECB to act. Angela Merkel has insisted that the ECB is counting on euro-area political action to be able to restart its sovereign bond buying program.
The 17-nation currency advanced to 98.18 against the yen, the strongest since July 6. However, it pared these gains and it traded at 97.99 yen yesterday in Tokyo trading session. The euro increased by 0.5 percent against the dollar to trade at $1.2356 in New York. However, the dollar increased against the yen to trade at 79.38 yen.
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