By Russell Glaser – The euro continues to be bolstered by talks of Ireland’s willingness to accept aid in order to save its faltering banking system while Fed Chairman Ben Bernanke came out swinging against critics of QE II and Asian countries weak currency policy.
Traders continue to bid the euro higher in morning trading of the European session. Fueling the euro buying are prospects of Ireland’s acceptance of a bailout from a joint EU/IMF fund. It remains unclear if Ireland will tap the European mechanism for nations struggling to pay their sovereign debts. Details of the proposed agreement have yet to be finalized.
Ben Bernanke came out swinging in a speech today in Frankfurt Germany. In his sharpest criticism of Asian nations that are artificially holding their currencies low to increase exports, Bernanke claimed that China and Singapore were the worst offenders. These nations are fueling uneven economic recoveries in the varying economies of the world. The Fed Chairman’s speech also addressed the criticism the Fed has encountered over the second round of quantitative easing.
Currently the EUR/USD is trading at 1.3690, up from an opening day price of 1.3586. The GBP/USD is trading at its opening day price of 1.6029 after trading as high as 1.6093. The USD/JPY is even for the day at 83.40.
The euro is trading with a high amount of volatility today and should continue to do so going into the US trading session. Traders should be following the Irish and EU/IMF negotiations as the economic calendar is absent of any noteworthy news events remaining for the day.
Support and resistance for the EUR/USD come in at 1.3660 on the hourly chart and last Friday’s high of 1.3770.
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
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