The euro gained in early deals this morning, despite the European Central Bank's perceived fudge in cutting rates by just 0.25pc yesterday. At 0915, the single currency was up at USD1.1013, while against sterling, it was also ahead, rising to STG0.6865. John Beggs, chief economist with AIB Global Markets, described the cut as a missed opportunity, but added, "What can be said about the ECB is that it retains an easing bias and further cuts are expected in the months ahead as the euro economy will remain weak over much of 2003."
Looking to the likely direction of currencies today, he said, "The euro has moved back above the USD1.10 level as we await the latest report from Hans Blix to the UN this afternoon. The report is unlikely to satisfy the US. President Bush indicated last night that time was running out for Iraq to disarm." "On the statistics front, today sees the release of US labour market data for February. The figures are likely to show a modest rise in employment and a small rise in the unemployment rate. The figures are unlikely to be favourable to the dollar," he added. //www.fxcentre.com