The euro strengthened vis-Ã -vis the U.S. dollar today as the single currency tested offers around the US$ 1.4650 level and was supported around the $1.4525 level. Technically, todayâ€™s intraday low was right around the lows from 12-13 November. The common currency moved higher after European Central Bank President said the central bank would respond in a firm and timely manner to interest rate pressures and said policymakers discussed a rate hike today before deciding not to tighten monetary policy. In other ECB news, the ECB raised its 2008 inflation forecast to 2.5% and lowered its GDP growth forecast to 2.0%. Data released in the eurozone today saw German October manufacturing orders up 4.0% m/m. In U.S. news, weekly initial jobless claims fell 15,000 to 338,000 while continuing jobless claims fell 59,000 to 2.6 million. Traders await the release of tomorrowâ€™s all-important November non-farm payrolls data. Dealers are also paying close attention to the Bush administrationâ€™s sub-prime mortgage bailout plans. Euro bids are cited around the US$ 1.4605 level.
Join the Discussion