The pair is likely to trade in a tight range today in Asia, with investors focussing on the euro before the European Central Bank holds policy meeting today amid renewed concerns about the debt crisis and political uncertainties in the region. Yields on Italy’s 10-year debt surged 13 basis points to 4.58% on Wednesday amid uncertainties about the outcome of the nation’s presidential election, while yields on Spanish 10-year notes climbed seven basis points to 5.45% as Spain’s Prime Minister Mariano Rajoy faced calls to step down amid reports of corruption in his party. Investors will also focus on any developments on nomination works for the Bank of Japan governor after incumbent chief Masaaki Shirakawa announced his intention of stepping down on March 19, together with his two deputies, ahead of the expiration of his term on April 8. Prime Minister Shinzo Abe will present his candidate for the next BOJ governor to opposition parties after a visit to the U.S. this month, according to local media reports. On Wednesday, the rate moved from Y93.27 to Y94.06, the highest since May 2010.
EasyForexNews Research Team