The euro held firm in early deals today, as growing concern over the geopolitical situation continued to weigh on the dollar. By 0920, the single currency was trading at USD1.0828, while against sterling, it was at STG0.6789. Poor US economic data, soft equity prices and ongoing tensions on the geopolitical front all contributed to a weaker dollar yesterday, with the euro regaining the USD1.08 level, although it still remained well within recent ranges. The outlook for the US economy became even more gloomy as data releases showed evidence of rising prices, that the labour market is still sluggish and that the trade deficit rose to a record USD44.2bn in December. According to Geraldine Concagh, senior economist, AIB Global Treasury, "While the rising deficit shows that the US continues to grow faster than its trading partners, the growing debt burden puts increasing pressure on the dollar." //www.fxcentre.com