The euro continued to trade over the USD1.07 mark in early deals this morning, although it eased slightly against the dollar. At 0900, the single currency stood at USD1.0723. However, according to Geraldine Concagh, senior economist, AIB Global Treasury, the greenback remains vulnerable to news on Iraq. Also, officials in Europe seem unconcerned with the euro's recent rally, with the European Central Bank's (ECB) Ernst Welteke saying that the dollar was not too weak and needed no support. He also offered some hope of an interest rate cut, saying that "theoretically" there was room for manoeuvre.
Sterling slipped against the dollar and stayed near its three and a half year low versus the euro yesterday after the release of the minutes of latest Bank of England meeting and a gloomy manufacturing industry survey from the CBI. This morning, however, the UK currency gained slightly on the euro, leaving the single currency at STG0.6614. ///www.fxcentre.com