The euro edged higher on currency markets this morning after the release of the eurozone's manufacturing index for November. The purchansing managers' index (PMI) revealed a slight upturn to 49.5 in the month, higher than expectations for a rise to 49.4. Retail sales figures for September, due out later, will also draw some attention. After two months of increases, consensus is for a monthly decrease in sales of -0.5 pct but for the annual figures to remain unchanged at + 1.5 pct.
The market's attention is also focusing on Thursday's European Central Bank interest-rate setting meeting. "While a rate cut is almost certain, if the ECB decides to cut rates by only 25 bp rather than the 50 bp which participants are hoping for, the euro is likely to come under pressure," said WestLB analyst Michael Klawitter.//www.fxcentre.com