The euro held its ground this morning, as investors nervously eyed the dollar ahead of crucial US data this afternoon. At 0900, the single currency stood at USD0.9872, while against sterling it was up a touch at UK?0.6382 Dealers have warned that, following Tuesday's disappointing US consumer confidence data, the markets are pessimistic about the rest of this week's releases, in particular this afternoon's third quarter GDP data.
Economists' forecasts indicate third quarter GDP rose 3.6pc on an annualised basis from the second quarter, compared with a 1.3pc rise in the second quarter and a 5.0pc rise in the first quarter. However, according to analysts, the fourth quarter is already likely to be weaker than the third, once again scuppering hopes of a sustained recovery upswing
Besides the GDP numbers, the markets will be assessing the latest weekly jobless claims figures as well as the Chicago manufacturing PMI for October. Adding to the greenback's woes, analysts have warned that the risks of a double-dip recession have increased given slowing US consumer demand //www.fxcentre.com