The Underlying concerns about inflationary pressures are prompting investors to flee from risky assets especially with the current destruction in the world's biggest economy. Yet analysts believe that thought the US economy might be in a recession, it would rebound strongly in time.
Meanwhile, the euro is fluctuating within narrow ranges pushing the pair to record a high of 1.5220 and a low of 1.5184. The volatility dominating the euro is due to the mixed signals giving that there is a dilemma to whether interest rates should be cut or not as the euro zone faces both growth concerns and high inflation pressures.
As for the Sterling Pound, it is trading low against the US dollar today pushing the pair to fetch a low of 1.9747 after recording a high of 1.9855 as the slowdown in the UK economy is affecting the services sector where weaker data caused confidence to fall sharply as suggested by a key survey.
The dollar rose against the yen today as investors stood on the sidelines amid the release of US economic data due later that might unleash fresh selling of the greenback. The USD/JPY pair was supported by the incline in the dollar hence was pushed to the upside to fetch at this hour a high of 103.71 and a low of 103.30
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