4 October 2001, 14:49 Forex - Euro rangebound in midday London trade ahead of BoE rate decision
LONDON (AFX) - The euro was a touch weaker but little changed from
morning levels in rangebound midday trade, ahead of the bank of
England's rate decicion and the opening of the US equity markets,
dealers said.
"I suspect that the euro is just range-trading as it usually does
ahead of central bank rate decisions," Tom Vosa an economist at
National Australia Bank (NAB) said.
"It has taken its leads from euro-yen lately and Asia is closed and
I suspect that investors are also looking ahead the opening of Wall
Street," he added.
The yen was slightly weaker, under pressure from the risk of Bank
of Japan intervention, dealers said.
"It seems that 120 has stuck on BoJ intervention fears. People are
also expecting repatriation flows to unwind and have positioned
themselves for this," Vosa said.
Sterling was little changed ahead of the BoE's rate announcement.
"Sterling will take its lead from the BoE decision. If they cut and
it is seen as growth supportive then we could see a rally," Vosa at NAB
said.
"Conversion trading after (prime minister Tony) Blair's euro
positive speech will unwind as it is unlikely that a referendum will be
held or won anytime soon," he added.
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