The Euro has pulled back from a 1 month high, while Aussie hits 4 month high. Yen stays stronger ahead of BOJ Meeting.
Earlier today the Euro slid slightly versus the Dollar and pulled back off of a one month high. It remained supported by expectations that the European Central Bank (ECB) will soon take action to lower borrowing costs for both Spain and Italy. These expectations have sparked a global rally in risky assets since Friday and have given a boost to the Euro and the Aussie.
It seems likely that the Euro will make further gains in the near term on hopes for such action, although exact details of how the ECB will stabilise the Euro zone's bond markets have yet to be determined.
The Euro was slightly down by 0.2% to $1.2380, having hit a one month high of $1.2444 yesterday.
Traders will now be anxiously watching to see if Spain or Italy will decide to ask for assistance from the Euro zone's bailout funds. Any such assistance could then result in the ECB purchasing bonds through a new scheme under consideration.
The Reserve bank of Australia (RBA) has kept interest rates unchanged at 3.5% and dropped few hints that it was in a hurry to ease them again. The Aussie hit its highest level in more than four months at $1.0603.
The RBA has said that the Australian Dollar's exchange rate still remains high despite a drop in the terms of trade. It seems to me though, that there probably isn't much that the RBA can do to oppose the strength in the Aussie Dollar.
The U.S. Dollar moved up 0.1% to 78.29 Yen, remaining above a two month low of 77.90 Yen hit last week, while the Japanese currency was at 96.99 per Euro from 97.03 Yen.
The Yen's strength follows a rally in equities worldwide which has ignited speculation that the Bank of Japan (BOJ) will refrain from additional monetary easing at a policy meeting that starts on Wednesday.
Earlier today the Euro slid slightly versus the Dollar and pulled back off of a one month high. It remained supported by expectations that the European Central Bank (ECB) will soon take action to lower borrowing costs for both Spain and Italy. These expectations have sparked a global rally in risky assets since Friday and have given a boost to the Euro and the Aussie.
It seems likely that the Euro will make further gains in the near term on hopes for such action, although exact details of how the ECB will stabilise the Euro zone's bond markets have yet to be determined.
The Euro was slightly down by 0.2% to $1.2380, having hit a one month high of $1.2444 yesterday.
Traders will now be anxiously watching to see if Spain or Italy will decide to ask for assistance from the Euro zone's bailout funds. Any such assistance could then result in the ECB purchasing bonds through a new scheme under consideration.
The Reserve bank of Australia (RBA) has kept interest rates unchanged at 3.5% and dropped few hints that it was in a hurry to ease them again. The Aussie hit its highest level in more than four months at $1.0603.
The RBA has said that the Australian Dollar's exchange rate still remains high despite a drop in the terms of trade. It seems to me though, that there probably isn't much that the RBA can do to oppose the strength in the Aussie Dollar.
The U.S. Dollar moved up 0.1% to 78.29 Yen, remaining above a two month low of 77.90 Yen hit last week, while the Japanese currency was at 96.99 per Euro from 97.03 Yen.
The Yen's strength follows a rally in equities worldwide which has ignited speculation that the Bank of Japan (BOJ) will refrain from additional monetary easing at a policy meeting that starts on Wednesday.
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