The Euro staged a resilient recovery from a 2-week low during trading on Tuesday as investors seemed to settle down amidst Italian political turmoil while further Federal Reserve stimulus kept the Dollar pinned down.
The Euro appeared to find solid support after the Italian Prime Minister, Mario Monti, played down market fears over his decision to resign. He went on to state that there was no danger of a vacuum ahead of any elections in the spring.
Meanwhile, analysts expect the Fed will replace its expiring 'Operation Twist' programme with another Treasury bond-buying plan at its Dec. 11-12 policy meeting which is another factor keeping the Euro away from its recent lows.
The Euro earlier stood at $1.2938 while the Dollar earlier bought 82.37 Yen and remained near to an eight month high of 82.84 Yen set in November.
High yielding currencies will I think be well bid in the next few days, as the prospect of fresh stimulus from the Fed and growing expectations persist that the Bank of Japan (BOJ) could expand its asset buying and lending programme at a meeting to be held soon.
High yielding currencies will I think be well bid in the next few days, as the prospect of fresh stimulus from the Fed and growing expectations persist that the Bank of Japan (BOJ) could expand its asset buying and lending programme at a meeting to be held soon.
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