There was little movement between the euro and the US dollar yesterday, with the dollar strengthening by 0.03 cents to close the day at the 1.3245 level. Trading was kept within tight ranges as investors remained cautious about news from the G20; world leaders are expected to announce an increase in funding for the International Monetary Fund but other developments will also be watched closely.
Data released yesterday showed that eurozone unemployment has jumped to 8.5%, while German retail sales fell by 0.2% in February, which was greater than expected. These poor announcements further supported the view that the European Central Bank will cut the eurozone interest rate from 1.5% to 1.0% today, and as such the single currency has remained under pressure.
In today’s trading the market has remained around yesterday’s close ahead of the ECB’s announcement at 12.45 BST and the accompanying speech from its President, Jean-Claude Trichet. In the US today continuing jobless claims, initial jobless claims and factory orders figures will be released, but the major news investors will be watching for will come from the G20.
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