Euro trading slightly lower today

Tuesday, 12 April 2011 12:09

Euro trading slightly lower today off the back of the market concerns that the ECB rate rise last week will hamper the efforts of Ireland, Portugal and Greece to contain debt, the Euro has dropped from a 15 month high against the USD.

Another aftershock of 6.6 magnitude hit Japan as radiation levels rose and forced Japan's government to widen the evacuation zone, in addition the accident at the nuclear plant has been upgraded to the highest level. Japan's currency climbed versus all of its major counterparts after the demand for safe assets increased, which was echoed in other currencies.

The EUR lost more than 0.3 percent and was at 1.4431 versus the USD. Japan's currency appreciated 0.5 % to 122.12 against the EUR and the USD/JPY decreased 0.2 % and traded at 84.60.

The Banque of Canada is next on the long line of central banks to meet and the market sentiment is that the rate will be unchanged at 1 % where it has been for the past six months. As a result of that Canada's currency dropped 0.1 percent to 0.9566 versus the USD.

New Zealand's central bank announced that farm export prices rose and this may lead to higher inflation and a increase in rates. The NZD/JPY strengthened to 66.10 and the NZD/USD climbed to 0.7798.

The AUD went down versus the most of its major counterparts as Asian stocks slid and reduced the demand for higher-yielding assets. Australia's currency traded at 1.0496 against the USD. The AUD/JPY weakened 0.6 % and was at 88.29.