The dollar experienced little change against its major counterparts as many investors are looking ahead a stream of US data this week for further clues on the health of the economy. Concerns about more fallout from credit market turmoil has hurt the US currency driving to records low; however, traders claim that the dollar is actually finding dome support giving that the Feds rate cuts and the recent fiscal stimulus could revive the US economy.
Trading activity seems slow today with US markets closed celebrating Presidents Day Holiday. Economic data coming from the US include housing data, CPI followed by the Feds Minutes.
Meanwhile, the euro is gaining strength gradually against the US dollar as the markets await industry and government reports this week which my indicate that the US housing fallout is deepening its effect on the Euro Area. Adding to this news, the ECB officials eased on speculation of further cut in rates which boosted the euro above the dollar pushing the pair to the upside to record at this hour a high of 1.4689 and a low of 1.4663.
According to the market, the pound is under pressure and is thus declining against the US dollar. Deals in Sterling influenced by key economic reports such as consumer prices that inclined, which is still affecting the final BOE decision where they hinted that there are more rate cuts in store, yet not as excessive as market expectations. All of these factors suppress the sterling as the rates outlook remains hazy hence dragging the pair with it to the downside to fetch a low of 1.9548 after recording a high of 1.9637.
As for the USD/JPY pair, the US remained within the 107 Yen range at the start of today's session.