The Euro fell against the dollar by 0.23% at present moment after Italy’s Monty voiced for a probable Euro zone breakup given the lack of eagerness to rein in the soaring borrowing cost of the peripheral nations. This would therefore lead to more demand for the safest German bunds pushing yield lower to 1.39% as compared to that of Spain and Italy.
Fed today plans to buy $5.5billion of treasuries as a part of extending operation twist with an aim to swap short-term treasuries with the longer term to keep the interest rate lower. The Chairman is also scheduled for his speech on economic measurement today. Said so, the Euro is expected to trade lower while the dollar may get room for gaining strength and may pressurize commodity prices