The euro appreciated vis-Ã -vis the U.S. dollar today as the single currency tested offers around the US$ 1.2650 level and was supported around the $1.2455 level. The U.S. Treasury announced that its new mortgage relief plan will help up to 9 million homeowners avoid home foreclosure. Mortgage servicers have been authorized to immediately reduce mortgage payments for eligible borrowers. In other U.S. news, the February non-manufacturing PMI survey fell to 41.6 from 42.9 in January, an acceleration in the downturn in the services industry. Likewise, both the new orders and employment sub-indices moved lower. Additionally, the ADP February U.S. private sector jobs survey revealed a loss of 697,000 private sector jobs last month. Most dealers believe these data indicate this Friday€™s non-farm payrolls data for February will be extremely weak with some whispers of job losses around 750,000. In eurozone news, the European Commission released proposals today to strengthen financial supervision across the European Union including an early warning system led by the European Central Bank. Central and Eastern European central bankers and regulators released a joint statement today to address the €œoften simplified and misleading€ information about the risks facing the financial sectors in those countries. Data released in the eurozone saw the February services PMI survey decline to 39.2 from 42.2 in January. ECB member Noyer yesterday report he doesn€™t see any risk that any eurozone country will collapse and added the ECB may enact additional unconventional monetary policy. Euro bids are cited around the US$ 1.2385 level.
Join the Discussion