The euro remained under pressure in early deals this morning as the dollar firmed on investor hopes of a surprise upside to US growth figures, due later today. The single currency was also dragged by the sixth straight fall in the German Ifo business climate index. Even if the day can lift the euro, any rise is unlikely to be sustained when US data later this afternoon is released. Both US third quarter GDP data and consumer confidence are likely to see improvements, dealers said. Niall Dunne of Ulster Bank Financial Markets today warned that the euro would face further heavy selling of the European Central Bank (ECB) did not cut rates at its next meeting next week.
"I know we have made this point many times, but just to remind you again, it' s now virtually certain that we will see a rate cut in the Eurozone on December 5. Last night, ECB chief economist Otmar Issing told us that 'there are no upward price pressures' in the near-term in the eurozone. "Such frankness is unheard of from Issing, and if it isn't followed by a rate cut, the market really will punish the ECB by selling the euro in large amounts," he added. //www.fxcentre.com