Tuesday, 7 Dec 2010

EUR Steadily Gaining on USD and JPY

The euro managed to recover some of its recent losses against the US dollar this morning, as rumors that Ireland is set to pass fresh austerity measures have begun to circulate. Ireland is the latest in a long list of European countries whose debt concerns have hurt the euro. That being said, news that Ireland is ready to tackle its problems have given the 16-nation currency support.

The EUR/USD pair had gone up over 100 pips since last night, and peaked at the 1.3392 level. The pair has since dropped slightly, and currently stands at the 1.3360 level. In addition, news of the Irish austerity measures led to significant gains for the euro against the Japanese yen. The EUR/JPY pair has gone up around 85 pips since last night, and is currently trading around the 110.55 level.

Turning to the rest of the day, traders will want to pay attention to any news out of the euro-zone that relates to the Irish debt situation. In addition, the Bank of Canada is set to unveil its latest interest rate statement at 14:00 GMT. The CAD has seen mixed results against its major currency rivals as of late. Any positive news from the BOC may boost the loonie in evening trading.