Forex Asia Review – Euro steady as markets await EU Summit

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Euro made small moves against the dollar and will most likely remain range bound as investors are cautious ahead of the two-day European Union Summit on Thursday and Friday. There is little hope that EU leaders will come up with concrete solutions to tackle the debt crisis. Progress toward the issuance of common euro zone bonds is highly unlikely after German Chancellor Angela Merkel said Europe would not share total debt liability  during her lifetime.

 

EURUSD traded the Asian session between 1.2479 and 1.2507. The pair will probably remain in a holding pattern until news comes out of the EU summit but the bias is still towards a bearish trend.

 

GBPUSD held on to yesterday’s gains and traded sideways between 1.5622 and 1.5639.

 

Against the yen, the euro held steady between 99.06 and 99.37, having hit a two-week low of 98.73 yen in the European trading session yesterday.

The dollar dipped 0.1 percent against the yen, bringing USDJPY to 79.49 yen, well below a two-month high of 80.60 yen hit on Monday. week.

 

Aussie was the best performer yesterday and held onto gains made against the greenback. AUDUSD traded between 1.0039 and 1.0068