TRD: Euro rises but still fragile on debt problems
Euro hovered above its 11-week lows against the greenback in an early Asian trade, although investors worry for the deepening euro zone debt crisis. The market fears about euro zone debt contagion, with Portugal being the next country to seek financial help from the European Union/IMF. Standard & Poor’s earlier today threaten to cut the credit ratings of Portugal weighing on the single currency. But later the euro bounced back helped by positive data released concerning the manufacturing activity in Asia (China, South Korea, and India), which made investors willing to surpass euro zone debt issues and helped to ease concerns.
The euro climbed up 107 pips from 1.2970 to 1.3077 against the US dollar.
The following ECB meeting on Thursday is of great importance, since investors are seeking for decisions that will help to manipulate the growing anxiety in the currency markets.
Against the Japanese Yen, euro rose from 108.40 to 109.72 reflecting the positive news from Asia and overcoming the slightly slower Euro zone’s Manufacturing PMI. The pair was last traded at 109.44.
