FOREXYARD: Forex News Blog

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• Euro Takes a Unexpected Drop
• Yen Picking Up Steam
• High Expectations for the ECB

Euro Takes a Unexpected Drop Posted: 29 Feb 2012 08:40 AM PST Following the announcement that the ECB would offer longer term lending options to European banks the euro took a surprising drop. The EUR/USD is hovering around $1.3391 as of this afternoon and analysts are concerned that we will see further drops as the day proceeds. Despite the overall boost to the economic economy that the ECB’s decision might cause, investors are still showing a significant amount of worry over the durability of the euro. Prior to the announcement there were several critics that voiced concern that the ECB’s move would be seen as only a temporary solution to the long term issue of the debt crisis. Read more forex news on our forex blog.

Yen Picking Up Steam Posted: 29 Feb 2012 05:30 AM PST The Japanese yen has regained strength after hitting nearly it lowest point in a year against the dollar. The yen fell below traditional support levels but as of this morning it appears to be picking up steam. It is currently trading at $80.32 against the dollar, marking a 0.2 percent increase. The euro has also dropped nearly 0.1 percent against the yen in a sign the Japanese currency may finally have hit the bottom of its weeks long drop. Read more forex news on our forex blog.

High Expectations for the ECB Posted: 29 Feb 2012 03:07 AM PST The euro continued to rise against the dollar earlier this morning is set to consolidate gains against the greenback. Currently the EUR/USD is trading around $1.3470, representing a rise of 0.1 percent and holding near its nearly 3 month high. News regarding the expectation that the ECB is prepared to provide 500 billion euros later this week during the longer term refinancing operation (LTRO) has spurred an increase in risk appetite. We are seeing investors flocking to the euro in hopes that the traditionally riskier currency will continue its upward trend. The ECB decision could also provide a brief reprieve in the ongoing European debt crisis as investors are hungry for any news that could spur economic growth. Heading into the afternoon, traders will be awaiting the announcement from the ECB and the subsequent results that will hit the market. Read more forex news on our forex blog.

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