Japan To Buy ESM bonds
The euro (EUR) is strengthening against most of its major counterparts, as market participants speculate that the European Central Bank (ECB) will refrain from indicating additional interest rate cuts when it meets on Thursday. News, that Japan will buy European Stability Mechanism (ESM) bonds, using their foreign exchange reserves has helped improve the market sentiment for the single currency. Former Italian Prime Minister Silvio Berlusconi will not run for the top office again in the upcoming elections, something that many analysts see as a very positive development. The highlights for this week are the interest rate decision by Bank of England (BoE) and European Central Bank (ECB) on Thursday.
The US 500 (SPI) is still struggling after it recorded a high at 1462.51 on Friday, having broken through the 1460 resistance, a level not seen since 2007. However, it did not manage to hold above this level and it now trades around 1455.
The Japanese yen (JPY) is strengthening against the US dollar (USD), while the greenback is rising versus the Australian dollar (AUD), the British pound (GBP) and the Canadian dollar (CAD).
The euro (EUR) is now trading above the 1.3100 level against the US dollar (USD) and a break above 1.3140 could pave the way for higher highs.
Tue May 03, 2016 9:51 am by Andrea ForexMart
Subject: Japan To Buy ESM bonds