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Reuters reports the single European currency was little changed on the day at $1.3205, having risen during yesterday's Forex trading session due to speculation the European Central Bank (ECB) may buy up government debt in troubled countries such as Portugal and Spain.
Manuel Oliveri, currency analyst at UBS, commented: "The euro has further room to correct to the upside as strong ECB bond buying will support sentiment and speculative positioning is short."
However, the Forex specialist claimed the tender "remains a sell on rallies", saying its overall movement is still negative.
President of the ECB Jean-Claude Trichet said moves by deficit-laden countries must measure up to the difficulties faced, implying nations such as Ireland should carefully consider recovery plans and ensure they are fit for the huge challenge of returning to independent fiscal stability.
Posted by Greg Secker
