Currency markets had slim pickings from a weekend meeting of finance leaders from the G7where the meeting acknowledged growing risks to the global economy. As we all know last week, the ECB had fuelled speculation of a rat cut in the near future when it held interest rate steady at 4%, dropping wording that action will be taken against inflation while considering the downside risk to growth.
However, at G7 meeting which was held during the weekend, ECB president Trishet stated that he had no call for an increase of rates yet neither had any call for a decrease in rates indicating that the two messages are to be clearly understood by market watchers.
Moving on, the euro today rose against the US dollar after the European Central Bank suggested easing monetary policy is no favor now giving that inflationary pressure prolonged in the euro zone pushing the pair to the upside to record a high of 1.4573 and a low of 1.4517.
Elsewhere, the British pound drops against the dollar in which the pair at this hour fetched a low of 1.940 after recording a high of 1.9487
Meanwhile, the US dollar lost ground against the yen on speculation that Mr. Bernanke will later this week reiterate that interest rates will fall further amid slowing economic growth, dragging the pair with it to fetch a low of 106.50 after recording a high of 107.48
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