The euro has opened November on the brighter side of 99c, holding onto overnight gains following weaker than expected US economic data Following the slump in US consumer confidence earlier in the week, both GDP growth and the manufacturing sector have disappointed the market, hitting dollar sentiment and holding back Wall St equities after a strong month According to analysts, emerging data from across the Atlantic may force a change in the perception of the US economy and may open the way for a year-end test on euro/dollar parity.
"Could it be that the market is finally starting to pay attention to fundamental data and we're set to let the dollar weaken against both the euro and the pound?" said Niall Dunne, economist at Ulster Bank Financial Markets, noting the reaction on the forex to the latest data Analysts at Bank of Ireland said that while last night's GDP report contained encouraging signs on the investment front, there were also "indications that the economy is losing momentum". These indications relate to signs that the strong Q3 consumer demand has come "off the boil" since September, which will limit growth in the last three months of the year //www.fxcentre.com