* The Euro is maintained in outlook with the concepts of political risks
* Dutch auction sees on justified request
* Two-day FOMC meeting due to start later Tuesday
Nia Williams
LONDON, 24 April, Reuters)-the Euro edged higher against the dollar Tuesday after the auction, fixed the Dutch debt temporarily eased fears that the fall of the Government of the Netherlands would spook investors, but the risk of mounting political concepts currency outlook.
The Netherlands sold 1.995 billion two-year and 25 bonds, approximately in the middle of the destination range, one day after Prime Minister Mark Rutte resigned in crisis over budget cuts.
Investors were nervous about signs of political upheaval in one euro area several other economies rated AAA. The Euro had its worst day of the week from Monday, falling over half a percent as concerns the results of France's presidential elections, and the data on the production of bearish inserted Dutch concern.
It increased 0.2 percent Tuesday to $ 1.3184, paring losses from the previous day, when the disappointing PMI data in the euro area, pushed it into the low $ 1.3103.
Currency, however, remains an excellent range of approximately between $ 1.28 and $ 1.33, it has traded since the beginning of April. Traders cited talk offers $ 1.3110 and lower level $ 1.3070 and offers from Middle East investors $ 1.3180.
"More talks about the resilience of the euro that is spooking some people from the game below over the short term, but there is a significant risk for the future," said Derek Halpenny, head of European research of the currency at the Bank of Tokyo-Mitsubishi.
Ratings agency Moody's said that the collapse of the Dutch Government, after agree to cuts of budgetary austerity was negative credit, although they maintained the country three times and classification. Fellow agency Fitch warned last week that was on the verge of taking action on the negative rating.
Many investors were also concerned about events in France, where Socialist Party François Hollande, who has promised to renegotiate the European budget Pact-won the first of France's presidential elections on Sunday.
A second round of a French presidential election is May 6, the same day that Greece elects a new Government, while Ireland faces a referendum compact fiscal Union later in May.
"How can we move to may and June we hear further volatility and turmoil, which we believe will see the euro breaks below $ 1.30," Halpenny said.
RESISTANCE EUR
The Federal Reserve of the United States starts a two-day policy meeting Tuesday. When the bar is set high in another round of stimulus, the market will be keeping Close eye on politicians, given the still fragile economic recovery in the U.S..
Some analysts attributed the last resistance of the euro against the dollar to decline in the yields of Treasury on the weaker economic data which has been compressed a discrepancy between the U.S. ten-year government bonds and their equivalent of the German.
The apparent inability of the common currency break on both sides of the range meant further consolidation was possible, they said, although the return of tension around the debt problems, few are optimistic about the euro in the long term.
"We expect the euro/dollar to resume the worsening trend in the coming weeks, with a break of $ 1.30 to open commercial target 1.25 within the horizon of the month 2-3," said Jens Nordvig, global head of FX Strategy at Nomura Securities.
Australian dollar hits a low two weeks against the US dollar after soft inflation data fuelled expectations of cuts in interest rates by the Reserve Bank of Australia.
Aussie was 0.3% in US $ 1.0286. Previously fell to a session low of US $ 1.0247 for data showing consumer prices Australian climbed less than expected in the last quarter when underlying inflation posted the smallest increase in a decade.
Figures paved the way for a rate Cut by the RBA next week and suggested further cuts later in the year. Central Bank of Australia earlier this month it would be advisable to consider cutting rate of 4.25% of the cash in the policy may 1 meeting, provided that the numbers of inflation was tame.
Safe haven Yen was broadly constant, near the market flat against the US dollar in Yen 81.14.
* Dutch auction sees on justified request
* Two-day FOMC meeting due to start later Tuesday
Nia Williams
LONDON, 24 April, Reuters)-the Euro edged higher against the dollar Tuesday after the auction, fixed the Dutch debt temporarily eased fears that the fall of the Government of the Netherlands would spook investors, but the risk of mounting political concepts currency outlook.
The Netherlands sold 1.995 billion two-year and 25 bonds, approximately in the middle of the destination range, one day after Prime Minister Mark Rutte resigned in crisis over budget cuts.
Investors were nervous about signs of political upheaval in one euro area several other economies rated AAA. The Euro had its worst day of the week from Monday, falling over half a percent as concerns the results of France's presidential elections, and the data on the production of bearish inserted Dutch concern.
It increased 0.2 percent Tuesday to $ 1.3184, paring losses from the previous day, when the disappointing PMI data in the euro area, pushed it into the low $ 1.3103.
Currency, however, remains an excellent range of approximately between $ 1.28 and $ 1.33, it has traded since the beginning of April. Traders cited talk offers $ 1.3110 and lower level $ 1.3070 and offers from Middle East investors $ 1.3180.
"More talks about the resilience of the euro that is spooking some people from the game below over the short term, but there is a significant risk for the future," said Derek Halpenny, head of European research of the currency at the Bank of Tokyo-Mitsubishi.
Ratings agency Moody's said that the collapse of the Dutch Government, after agree to cuts of budgetary austerity was negative credit, although they maintained the country three times and classification. Fellow agency Fitch warned last week that was on the verge of taking action on the negative rating.
Many investors were also concerned about events in France, where Socialist Party François Hollande, who has promised to renegotiate the European budget Pact-won the first of France's presidential elections on Sunday.
A second round of a French presidential election is May 6, the same day that Greece elects a new Government, while Ireland faces a referendum compact fiscal Union later in May.
"How can we move to may and June we hear further volatility and turmoil, which we believe will see the euro breaks below $ 1.30," Halpenny said.
RESISTANCE EUR
The Federal Reserve of the United States starts a two-day policy meeting Tuesday. When the bar is set high in another round of stimulus, the market will be keeping Close eye on politicians, given the still fragile economic recovery in the U.S..
Some analysts attributed the last resistance of the euro against the dollar to decline in the yields of Treasury on the weaker economic data which has been compressed a discrepancy between the U.S. ten-year government bonds and their equivalent of the German.
The apparent inability of the common currency break on both sides of the range meant further consolidation was possible, they said, although the return of tension around the debt problems, few are optimistic about the euro in the long term.
"We expect the euro/dollar to resume the worsening trend in the coming weeks, with a break of $ 1.30 to open commercial target 1.25 within the horizon of the month 2-3," said Jens Nordvig, global head of FX Strategy at Nomura Securities.
Australian dollar hits a low two weeks against the US dollar after soft inflation data fuelled expectations of cuts in interest rates by the Reserve Bank of Australia.
Aussie was 0.3% in US $ 1.0286. Previously fell to a session low of US $ 1.0247 for data showing consumer prices Australian climbed less than expected in the last quarter when underlying inflation posted the smallest increase in a decade.
Figures paved the way for a rate Cut by the RBA next week and suggested further cuts later in the year. Central Bank of Australia earlier this month it would be advisable to consider cutting rate of 4.25% of the cash in the policy may 1 meeting, provided that the numbers of inflation was tame.
Safe haven Yen was broadly constant, near the market flat against the US dollar in Yen 81.14.
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