» Forex - The Dollar dropped to lifetime lows against the Euro on weak US data despite support from Corp Q1 earnings.

The Dollar dropped to lifetime lows against the Euro on Wednesday, as a steep decline in US home construction and record high euro zone inflation highlighted the contrasting growth paths of the two economies. EurUsd rose to 1.5979 high, its strongest since its 1999 launch, as data showing a record 3.6% advance in euro zone prices last month suggested the European Central Bank won’t cut interest rates soon.
Dollar get under pressure as investors are also monitoring US Q1 earnings results which have been so far mixed. JPMorgan Chase, the third-largest US bank, said its quarterly profit fell 50% in the first three months of the year, while The Wall Street Journal reported Merrill Lynch will post $6 to $8 billion in write-downs when it releases results on Thursday. But US stocks rallied more than 2% on Wednesday as investors were encouraged by earnings from Intel Corp and IBM.

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