EUR/USD Performance Chart as at 3:00 a.m. Singapore time, 12/01/11

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HISTORICAL DETAIL

% Change

1 Wk -2.89%

1 Month -2.28%

3 Months -7.43%

6 Months 1.57%

1 Year -10.31%

 

52 WEEKS

High 1.4579

Low 1.1877

 

BLOOMBERG MEDIAN FORECASTS

Q1 2011 1.29

Q2 2011 1.31

Q3 2011 1.31

Q4 2011 1.30

 

DAILY DETAILS

The euro wiped out earlier losses to rise against the dollar late this morning, with traders citing talk of increased Portuguese bond buying by the European Central Bank (ECB) as helping lift the currency. Also, Japan announced plans to buy bonds issued by a European rescue fund, but investors seemed to remain skeptical that such a move would result in fresh buying in the single currency. Traders initially saw Tokyo's promise to buy the bonds as a show of support for Europe's struggle to tame its debt crisis. The bonds are expected to be issued by the European Financial Stability Facility (EFSF) later this month, and will be used to finance Ireland's bailout plan. The euro has struggled lately because investors fear a debt crisis that has already claimed Greece and Ireland may be spreading to Portugal – and perhaps Spain next. Investors remain cautious ahead of a make-or-break debt auction by struggling Portugal that will signal whether it will be able to afford to raise funds in the debt market or be forced to take a bailout. Spain will follow suit on Thursday. Analysts think the euro could gain once the bond auctions are out of the way, though if borrowing costs stay high any gains would be temporary as attention would turn to when a call for outside assistance might come. "The euro may see a bounce - a knee-jerk one - if these auctions see a good bid-to-cover ratio," said Jeremy Stretch, head of currency strategy at CIBC World Markets. "But success will come at a price." [1] Paolo Palazzi-Xirinachs, Chicago

 

Notes: Source: [1] Bloomberg (11 January 2011), [2] Reuters (11 January 2011), [3] Bloomberg UK (11 January 2011), [4] Sydney Morning Herald (11 January 2011), [5] Reuters UK (11 January 2011), [6] Wall Street Journal (11 January 2011). Chart data sourced from Bloomberg.