Tuesday 1st April
The Euro rose to a fresh high of $1.5895 against the USD yesterday but profit taking saw it fall back sharply from that level and this morning it is steady ahead of important US economic releases due this week culminating in the March payroll numbers due out Friday.
The US currency's down Trend remains intact as the prospect of further interest rate cuts by the Fed to fend off economic growth deterioration reduces the dollar's appeal against other currencies. Sterling though remains weak against the USD and is still the favoured currency of choice to short on any show of dollar strength.
Overnight, as expected the RBA has held rates steady at the 12 year high of 7.25% as previous increases work to moderate inflation pressures. Leman Brothers plans to raise $3 billion to quash questions over its financial stability. Equity markets soft but undecided at present. The breaking news of UBS having to come back to the market/shareholders yet again to raise funds is not ggod news for equity markets and this credit crunch obviously has much further to run!