The euro came off vis--vis the U.S. dollar today as the single currency tested bids around the US$ 1.5625 level and was capped around the $1.5735 level. Technically, todays intraday low was right around the 38.2% retracement of the move from $1.5340 to $1.5895. Traders await this weekends Group of Seven meeting in Washington, D.C. to see if policymakers will verbally intervene against the U.S. dollars weakness and recent exchange rate volatility. French officials this weekend indicated the G7 will pursue a more stability in the FX market while German sources indicated the government there is against any exchange rate intervention to prop up the U.S. dollar. Data released in the eurozone today saw German February industrial output up 0.4% m/m and 10.1% y/y while February manufacturing output was up 0.3%. The European Central Bank is widely expected to keep interest rates unchanged on Thursday. Bundesbanks Zeitler noted he sees German 2009 GDP growth around 1.5%. Qatari central bank Governor Al Thani reported Kuwait may repeg its currency to the U.S. dollar ahead of planned monetary union for the region in 2010. Euro bids are cited around the US$ 1.5345 level.
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