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European session: yen gains; euro may corrects its resent gains
11.04.2011 16:42:00

The yen gained versus most of its major counterparts after the latest earthquake to strike Japan revived speculation that insurance companies would need to repatriate offshore investments to help pay for damages.The euro retreated from near the highest in 15 months against the dollar and an 11-month high versus the yen on concern Europe’s debt crisis may be worsened by rising interest rates. “We are facing the end of euro strength,” said Eugen Keller, a currency strategist at Bankhaus Metzler in Frankfurt. “It’s overshot to the upside and we think there’s going to be a correction. This dilemma of the European Central Bank imposing a one-size-fits-all monetary policy on the region and a strengthening currency is not very helpful for the periphery.” German Finance Minister Wolfgang Schaeuble warned after an April 9 meeting of European finance officials in Godollo, Hungary, that Greece may need more financial relief. Europe’s currency may “correct” to between $1.35 and $1.38 over the next three months, though it may first reach a technical resistance level of $1.4580 “in coming days,” said Bankhaus Metzler’s Keller. The dollar advanced against most of its major peers after U.S. lawmakers averted a government shutdown by agreeing to cut about $38 billion in spending.

EUR/USD: the pair traded within the limits of $1.4440-$ 1.4480GBP/USD: the pair decreased in around $1.6310 before bounced back to $1.6350.USD/JPY: the pair decreased in around Y84.55.
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