March 8th 2012, Keith Jenkins & Monami Yui, Bloomberg.com
According to Bloomberg, the Euro strengthened and was at its highest in two weeks due to the speculation that Greece might attract more investors to make its debt-swap plan a success (Jenkins & Yui, 2012).
Due to low interest rates by the ECB (European Central Banks) and the Bank of England, the Euro stayed stronger against the Dollar and the Yen (Jenkins & Yui, 2012).
The last time a similar situation happened was on February 9th when the last ECB meeting was held and surveys showed some "stabilization in the region". At that time the Euro appreciate 0.2% against the Dollar and 1% against the Yen (Jenkins & Yui, 2012).
According to Karen Jones (cited in Jenkins & Yui), head of fixed-income, commodity and currency technical analysis at the bank in London, the Euro-yen has rebounded back from a six week uptrend at 105.85 (2012). She also states that “the market will find resistance at 108 and will need to regain 108.75 to retarget the 55-week moving average at 109.38 and the July low at 109.58 (Jenkins & Yui, 2012)”.
Apart from that, Commerzbank AG, the second largest bank in Germany, states that the Euro may rise up to 109.58 Yen, citing from trading patterns (Jenkins & Yui, 2012).
To read the full article, click here: http://www.bloomberg.com/news/2012-03-08/yen-weakens-after-data-shows-japan-posted-record-current-account-deficit.html
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