Euro Hits 7-Week High, Policymakers In The Spotlight

  The Euro held its ground during the Asian session  on Wednesday after rising to a new 7-week high in  the previous session. 

Euro trades near 7 week high to Dollar and Yen 

   The Euro has held onto gains to the Dollar on market  expectations of a constructive outcome to Greek talks  and on speculation of ECB action 

  Meanwhile, investors are still waiting to see if  European policymakers will take action to curb the  region's debilitating debt crisis. 

Recently, expectations are growing that the European  Central Bank (ECB) will announce, on 6th September,  at its next policy meeting, its plans to assist Spain  and Italy to reduce their bond yields. 

The Euro earlier today traded at $1.2471, close to  a seven week high of $1.2488 hit yesterday and rose  0.1% to 98.97 Yen, also near a seven week high of  99.18 Yen hit yesterday.

  The Dollar remained virtually flat at 79.33 Yen. 

  Recent data has shown that Japan's trade deficit  widened in July more than economists forecast, and this  has underlined the fragility of the global economy and  is expected to boost demand for the safest assets.

  Focus now shifts to the release of minutes from the  latest U.S. Federal Reserve meeting later today. Expect  the Dollar to come under pressure should there be any  hint by policymakers that they are considering another  round of monetary easing to bolster growth of the U.S.  economy.