The euro was quiet in early deals today, as the market awaits key data from the US and the minutes of the last Bank of England Monetary Policy Committee (MPC) meeting. By 0900, the single currency stood at UK?0.6319 and USD0.9793. US Federal Reserve chairman Alan Greenspan speaks on productivity today and his comments will be watched for any hint on interest rate moves. However, it is widely believed that the Fed has used up all its ammunition and that there is little, if any, room for another cut.
As a result, most observers will focus on tomorrow's third quarter GDP data for near term direction. According to Niall Dunne of Ulster Bank Financial Markets, an outcome below 3pc will signify that the US is not yet back to trend growth - a sign that will surely point southwards for the dollar. Meanwhile, the UK is coming under increasing pressure from big business, in particular car giant Ford and diversified manufacturer Unilever, to join the eurozone, which could lead to Blair passing the so-called "five tests" next June, which will boost the euro against sterling in the near term. //www.fxcentre.com