EUR/USD near 1.2850 and USD/JPY at 94.80 on their Respective Issues

The euro hovered near a four-month low against the dollar on Wednesday after a rescue deal for Cyprus raised fears about financial stability in the currency bloc, while the yen slipped on hopes of more bond buying by the Bank of Japan.

Commodity currencies held firm after upbeat data on U.S. home prices helped to lift U.S. shares, with the Dow Jones Industrial Average hitting yet another new record and the S&P 500 near its all-time closing high.

The euro dropped 0.1 percent to $1.2852 on Wednesday, not far from the four-month low of $1.2828 hit on Tuesday. Against a resurgent Australian dollar, it traded near the four-month low of A$1.2225 hit on Tuesday, fetching A$1.2276.


This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.