EUR/USD
Dollar Stable Versus Other Majors Monday Morning [EUR/USD]
4/7/2008 6:57:23 AM The dollar was steady versus other major currencies Monday morning in New York ahead of this week`s G7 meeting Washington, with analysts saying that any move to reassure people about the US financial system will boost the greenback.
Monday will likely be a quiet day in economic news, with the only report coming in late afternoon trading. AT 3:00 pm ET, a report on Consumer Credit in February will be made public. In January, the report came in at $6.9 billion, and and analysts are expecting a slightly smaller debt in February of $6 billion.
The dollar was little changed versus the euro Monday morning in New York, rising to 1.5626 before easing back to 1.57 just before 7 am ET. Later this week, the European Central Bank will make its next interest rate decision. Expectation are for the ECB to stand pat at 4 percent on Thursday.
German industrial production grew 0.4% month-on-month in February, following a revised growth of 1.4% in January, the Ministry of Economy and Technology indicated Monday. The initial growth estimate for January was 1.8%. Economists had expected industrial output to decline 0.4%.
The dollar advanced against the sterling Monday morning, rising to 1.9833 before levelling off. The dollar slipped below 2 buck mark on Friday, but has since rebounded amid expectations the Bank of England will lower its key lending rate on Thursday.
The dollar gained on the yen Monday morning, challenging a 4-week high before hitting resistance. The buck rose to 102.84, erasing Friday`s losses. The Organization For Economic Co-operation and Development maintained its Japanese growth outlook for 2008 and stated that a hike in key interest rate would not be warranted until inflation is firmly positive.
A report from the OECD revealed that the Japanese economy is expected to expand 1.6% in this year, in line with December forecast. The organization said the economy would continue to register 1.5%-2% growth over the next two years.
Tags: EUR/USD
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