FRX: Euro Strengthens Before ECB Meeting, Rally Likely to be Short
The euro gained against the US dollar and the Japanese yen today prior to the European Central Bank meeting tomorrow. The Stoxx Europe 600 index gained 0.7 percent. Investors are hoping that a feasible solution to the European sovereign-debt crisis may be arrived at in the meeting. Jean-Claude Trichet, the President of ECB, has not ruled out the prospect of increasing government bond purchases. Despite today’s gains, analysts remain pessimistic about Euro’s strength and expect the rally to be short-lived.
EUR/USD spiked to 1.3068 at about 10:09 GMT today after opening at 1.2981. EUR/JPY traded at 109.47, a rise from the opening price of 108.64.
