The pair is likely to trade in a tight range today in Asia, with investors waiting for a summit meeting by European leaders on June 28 and 29 amid fading expectations that policymakers will hammer out fresh measures to deal with the region’s debt crisis. German Chancellor Angela Merkel on Monday made clear that she will not give in to any calls for joint liabilities at the upcoming EU summit this week. Italian Prime Minister Mario Monti said on Friday that Germany, France, Italy and Spain agreed that the European Union should adopt a series of growth measures worth about 1% of the region’s growth domestic product. Yields on Spain’s 10-year bonds rose for a second straight day, up 24 basis points at 6.87% on Tuesday, while yields on Italy’s 10-year debt surged 17 basis points to 6.18%. Meantime, the dollar may see some support from a rebound in yields on Treasury’s 10-year notes following a better than expected housing data. The rate moved from Y79.23 to Y79.79 on Tuesday.
EasyForexNews Research Team