The euro came off vis--vis the U.S. dollar today as the single currency tested bids around the US$ 1.5675 level and was capped around the $1.5800 figure. The common currency failed to sustain intraday gains and was pulled lower by a very weak British pound. German Deputy Finance Minister Mirow spoke about this weekends G7 meeting saying I am very optimistic that we will agree on a very convincing, substantial response, a joint G7 response to the financial-market developments over the past eight months. Regarding exchange rates, Mirow added Every G7 ministerial meeting also addresses exchange rates. Washington won't be any exception. Traders are closely awaiting the release of the Federal Open Market Committees minutes from its most recent policymaking meeting. Most Fed-watchers expect the minutes will evidence concern with the ongoing liquidity and housing crises but will evidence some dissent about reducing official interest rates too much. The FOMC is expected to lower the federal funds target rate again on 30 April, most probably a 25bps monetary easing. Data released in the U.S. today saw February pending home sales fall 21% y/y to 84.6. In eurozone news, dealers await tomorrows EMU-13 Q4 GDP data. Euro bids are cited around the US$ 1.5345 level.
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