The euro came off vis-Ã -vis the U.S. dollar today as the single currency tested bids around the US$ 1.5340 level and was capped around the $1.5455 level. The common currency reached its lowest level since 12 March after traders continued to unwind short U.S. dollar positions. Data released in the U.S. today saw February existing home sales climb 2.9%, up from Januaryâ€™s 0.4% decline. Some economists believe the pullback in the beleaguered U.S. housing market is slowing. Other data released today saw the Chicago Fed National Activity Indexâ€™s three-month moving average fall to -0.87 in February and these data seemingly increase the possibility of recession. Traders are closely watching JPMorgan Chase Bankâ€™s increased bid for failed investment banking giant Bear Stearns and the Federal Reserveâ€™s role in that tie-up. Liquidity was reduced today in Europe on account of the Easter Monday holiday. Euro bids are cited around the US$ 1.5145 level.
Join the Discussion