Friday, 7 May 2010

EUR Recovers from 14 month Low

The EUR recovered some of its losses against the USD and Yen in today's Asian and European trading after the Japanese finance minister suggested the G-7 will start trying to ease market concerns triggered by Greece's financial turmoil. This assured investors that the G-7 will try to contain the Greek debt crisis from spreading to the rest of the Euro-Zone.

The euro is now trading at $1.2787 after yesterday briefly plunging to a one-year low of $1.2510 and an eight-year low of ¥110.49. It is currently trading at ¥118.87 from ¥113.26. The Dollar rose to ¥92.07 from ¥89.92 late in New York

The Pound weakened as the results from yesterday's U.K. election substantiated the concerns of a hung parliament. While the conservative party is set to win the most seats it will not have an overall majority. The concern is that a weak government will make it difficult to implement reductions in the fiscal deficit. The Pound briefly dropped below $1.4500, dropping close to 500 pips. It has recovered some its losses later in the day to currently trade at $1.4718.