Source: ForexYard
Despite a slight setback yesterday, the EUR resumed its appreciation against the USD as risk appetite returned, crossing the 1.4800 price level during today’s trading day.
The EUR has been benefiting from the recent deterioration in sentiment towards the Dollar as well as improving economic indicators across the Euro-Zone that helped support positive sentiment towards this common currency. This week several important economic news releases are expected from the Euro-Zone that will likely determine the currency’s trend for the remainder of the week. With the expectation for a continuation of improvement, the EUR will like maintain its strength versus its major counterparts.
The Japanese Yen has been experiencing a slight downtrend against its major currency rivals recently, except the USD. However, this might change throughout the rest of this week’s trading as the bank holiday in Japan ends, and Yen trading returns to regular volumes. The Yen has been keeping steady recently over improving economic conditions and optimism from the Bank of Japan (BOJ). While the Yen seems to be at a disadvantage against its riskier, higher yielding counterparts, the losses seem to be quite minimal. Furthermore, the JPY continues to gain versus the USD.
With the recent surge in optimism it is unlikely that the EUR’s recent rally versus the Yen will reverse itself this week. While gains may be mitigated once Japanese markets return early Wednesday, the upward trend for the pair is likely to continue.
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
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