The euro slipped close to USD1.05 this morning having failed to take advantage of last night's weakness in US retail sales. The retail figures revealed weaker consumer spending in December as unemployment rose, but investors are unwilling to take too much out of the dollar as they watch earning developments on Wall St. The market is this morning digesting Intel's fourth quarter results last night, when it beat forecasts but cut spending for 2003, and are now awaiting Yahoo and Apple tonight
"The dollar may have found a temporary base at these levels," said Niall Dunne, economist at Ulster Bank. He added that the US remains very dependent on consistent consumer activity, "so any sign of deterioration in the year ahead will add to US concerns". The market is also watching developments on the dollar/yen cross after Zenbei Mizoguchi, the official newly appointed to take charge of Japan's foreign exchange policy, said the finance ministry maintains the right to intervene in the market to curb "excessive" currency movements. At 1015, the dollar was trading at Y118.14//www.fxcentre.com