15 October 2001, 15:09  Forex - Euro slightly higher in midday London on US anthrax scare

LONDON (AFX) - The euro was slightly higher from morning levels in midday trade, still benefiting from increased uncertainty following the discovery of more cases of anthrax in the US, dealers said. Dealers said the market is now looking to US business inventories data due this afternoon for further leads. They said the data could give some clues to the state of the US economy despite being seen as a lagging indicator. "There are few flows," Tony Norfield, a currency strategist at ABN Amro said. "The anthrax scare will have caused some element of concern about the US and the dollar should weaken. The IMM says the market has cut back on long euro positions, but they are still significant and will act as a roof," he added. "I think the euro will struggle to reach the high 0.91's and 0.92 is the roof," Norfield said. Richard Grace, a currency strategist at West LB said: "Concerns over anthrax and bio-terrorism have pushed the dollar lower with most cross rates benefiting. Under this basis, volatility has risen enormously and participants are advised to exercise caution as volatility will continue over the next 24 hours." Sterling was trading in line with the euro while the yen was little changed, dealers said.

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