The euro gained in early deals today, forcing the dollar to retreat after overnight progress. Rangebound trading saw the single currency hit USD1.0751, while against sterling it was STG0.6811 by 0910. Traders will watch for news today ahead of the Saturday deadline for Iraq's destruction of its missiles and the latest Blix's report. Media reports suggest Blix will express dissatisfaction with Iraq's compliance to date.
According to Geraldine Concagh, senior economist with AIB Global Treasury, "Data will remain second-fiddle to geopolitics but there are a number of important releases today. On the calendar are the Chicago PMI, Michigan sentiment, and revised Q4 GDP. Chicago PMI will offer a preview of the manufacturing ISM, which is due out on Monday." "After Tuesday's weak consumer confidence data, the Michigan sentiment index poses a threat to the dollar. Eurozone data include business and consumer confidence and the HICP flash estimate for February, which is expected to show the headline inflation rate easing to 2.2pc," she said. ////www.fxcentre.com