Posted January 12, 2011
Trading moves up and down for euro. Japan pledge invokes move to euro.
During the Tuesday currency trading session, the euro was able to rise against the US dollar during trading, though the day was met with much up and down movement for both currencies. The euro spiked early in the day after the Japanese government promised to help buy bonds that were backed by European governments. This offered a bit of confidence for traders who took to the risk of the euro as a result.
The euro was able to move ahead of the US dollar during the Tuesday currency trading session It moved from US $1.2990 as of the end of trading on Monday to US $1.2973 by the end of the Tuesday trading session in New York. During the trading day, the euro managed to move as high as US $1.2951 during the day, but lost some of those gains.
The announcement from Japan during the Asian trading session that the Japanese government would buy some European debt helped to provide confidence to traders. The debt bonds, issued by the European Financial Stability Facility will be issued later in the month. Japanese is a large economy and as such, the buying of this debt sent signals to investors that the euro zone was more stable than many believe.
Nevertheless, the markets continue to be volatile, especially in the euro currency. It is likely that the euro will lose ground this week, as it has done recently, many investors say. On Wednesday, it is widely expected that Portugal will tap into the bond market which will likely hurt the common currency.
The US Dollar index showed the US dollar down for the day. It moved form 80.87 as of the end of trading in North America on Monday to 80.82 by the end of the trading session on Tuesday.
Against the yen, the US dollar moved from Y 82.72 as of the end of the trading session on Monday to Y 8.25 by the end of trading on Tuesday, in North American trading.
The euro moved up for the day against the yen, by as much as 0.7 percent, to Y 108 for the day as well.
The UK pound moved from US $1.5568 as of the end of trading on Monday to US $1.5602 by the end of the trading session on Tuesday.