» Forex - Last week European data knocked off Euro from record 1.6019 high

Last week’s rally in the Dollar may have also led some investors to sell the currency ahead of the weekend to cash in profits, traders said.

On Friday, Dollar had limited reaction to a report showing US consumer confidence fell for a third straight month, touching its weakest in more than 25 years.

In Europe, the Ifo German business sentiment index showed the biggest monthly fall since September 2001 on Thursday, taking the April headline number to a two-year low.

The percentage chance the Fed will keep its benchmark interest rate unchanged at 2.25% at this week meeting rose to about 26%. Just a week ago, futures markets were pricing between a 25 to 50bp cut.
Meanwhile, FX participants were paring bets that the ECB’s next move will be a hike in benchmark interest rates.

Source :

This entry was posted on Monday, April 28th, 2008 at 2:00 and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.