The pair is likely to trade in a tight range today in Asia, with investors focusing on whether EU members will ratify a financial aid for Greece after EU finance ministers approved the rescue aid for the struggling country. Chancellor Angela Merkel’s ally said that Germany must veto Greek aid if haircut risk exists, while Peer Steinbrueck of the main opposition Social Democrats (SPD) said on Tuesday that Germany’s parliament should not vote on a new funding deal for Greece until the government has provided all necessary information to lawmakers. Yields on Treasury’s 10-year notes fell two basis points to 1.64%, while the Standard & Poor’s 500 Index dropped 0.52% on Tuesday amid uncertainties about the debt crisis in Europe. Investors will also watch closely remarks from Japanese policymakers on the yen as they prepare for the Dec. 16 election. Shinzo Abe, strong candidate for prime minister after the election, yesterday renewed his call on the Bank of Japan to set consumer inflation target of 2.0%, rather than the current target of 1%. The rate moved from Y81.86 to 82.32 on Tuesday.
EasyForexNews Research Team