Global Newsbrokers Forex Service
Europe open at 11:19:02
EURO HOLDING FIRM AHEAD OF ECB
Thursday, January 13
The euro is holding on to most of
yesterday's gains against the dollar
posted in the wake of the US trade
data, currently hovering around
$1.3250.
As usual, the euro's strength comes
from dollar weakness rather than any
significant improvement in its own
fundamentals. This lack of
improvement is liable to be reflected
in the ECB's decision later today to
leave interest rates unchanged.
Euro-zone inflation is above its 2.0
per cent target level but stable,
while still sluggish growth and the
euro's appreciation argue for no
change in policy.
The ECB's expected decision to leave
interest rates at 2.00 per cent would
be the 19th consecutive month that
they have remained unchanged. And
there are at the moment few prospects
of any near-term tightening.
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