Hi, we've made some changes

FX round-up: Euro maintains strength

News for Spread Betters

PreviousPrevious
NextNext

There's a new Investor Edition of CMC Markets' spread betting platform... and it's exclusive to DigitalLook.com users...

Get full details about Marketmaker:Investor Edition here. Advertisement

Date: Friday 29 Feb 2008

LONDON (ShareCast) - The dollar hit new lows versus the euro Thursday following disappointing reports on US unemployment and economic growth plus more comments from Fed chairman Ben Bernanke.

In his second day of testimony on Capitol Hill, Federal Reserve boss Bernanke talked up the likelihood of some bank failures, although a recession can be averted.

Data revealed a surprise 19,000 increase in the number of first time jobless claimants last week to 373,000 from 354,000 a week earlier. Analysts had penciled in a figure of 350,000.

Gross domestic product for the final quarter of 2007 was unrevised from an earlier estimate of 0.6%, while a 2.2% annual gain was the weakest pace in five years.

Sterling regained a little ground versus the euro, having hit an all-time low against the European currency midweek on fears that a UK clearing bank is in trouble.

But many traders think the recovery will be short-lived as the euro holds steady near a record high against the dollar.

They say the pound remains vulnerable on worries about credit markets and fears that the UK economy could go the same way as the US.

Meanwhile, news that a 75,000 reduction in German unemployment in February sent unemployment down to 8%, its lowest since November 1992, gave the euro a further boost.

The European Central Bank may be put off cutting borrowing costs as it fears that a tighter labour market might stimulate wage inflation.

Digital Look have been voted
"Best Research and Information Provider"

4th Floor, Bankside House, 107 Leadenhall Street, London EC3A 4AF.
Registered in England and Wales (registered no. 3678570).