EURUSD Touches 1.33

EURUSD Touches 1.33

The euro (EUR) has weakened against most of its major counterparts, after recording higher highs across the board. The single currency benefited from an improved market sentiment following positive developments regarding the US fiscal cliff situation and the move by the S&P rating agency to lift Greece to an 18-month high of “B-”; citing a strong and clear commitment from the eurozone to keep the troubled nation in the single currency block.

The highlight for the week is the Japanese yen (JPY) following Japan’s elections over the weekend. The Japanese yen (JPY) failed to weaken against the US dollar (USD) following Bank of Japan (BoJ) decision to add another JPY 10 trillion to the Asset Purchase Program. This was because the inflation target was left unchanged however this may change in the near future.

The euro (EUR) recorded an 8-month high at 1.3308 versus the US dollar (USD) late in the EU session yesterday. This is a near 3% appreciation since the beginning of December.

The US 500 (SPI) retraced lower after producing a fresh 2-month high at 1447.76. The GER 30 (DAX) followed suit after a new record high at 7673.8.