The overnight trading session for the euro dollar was interesting for a number of reasons: first the pair had been trying to form an interim base at the USD1.29 region but at one point during the Asian session touched a high of USD1.2991 on the news that Japan was now also prepared to step in and purchase European bonds. However, the pair fell back once it was established that Japan would be using its own reserves of euros to purchase these bonds. Japan now joins China in “pledging” to help Europe out of its debt crisis. However, any relief the eurozone may feel at Japan’s willingness to purchase these bonds (priced at a premium over German bonds) may be short lived given that both China and Japan have a strong vested interest in trying to prevent the Euro from falling further in an effort to protect their own currencies and export markets.
About Anna 1036 Articles
Hi – my name is Anna Coulling and I am a full time currency, commodities and equities trader. I have been involved in both trading and investing for over fifteen years and have traded many different financial instruments, from options and futures to stocks and commodities. I write and publish articles ( mostly for free ) for UK and international publications on a wide variety of financial issues, and in particular I enjoy helping others learn how to invest and trade.