The dollar remains in a tight range against the euro this morning following a brief surge on Friday after better figures from the US consumer and retail sector. With all eyes on Wall St earnings this week, the dollar has paired some of its gains in anticipation of corporate news that will reflect the poor state of the economy. "If you think back to the three months we've just had, it's hard to imagine that any corporate will manage to beat expectations," said Niall Dunne at Ulster Bank.
At 1000, the euro was trading at USD1.0751, unchanged this morning but up from USD1.0700 on Friday. Meanwhile, sterling is stronger on both the euro and the dollar on comments that Tony Blair will delay a vote on single currency membership until 2004. Dunne also warned that while people may be happy that the war is over, as the market enters quarterly earnings season, investors are not yet willing to bet that this increased confidence will translate into resumed spending. "Just as figures before the war were negatively distorted by the impending conflict, figures in the immediate post-war period may be exaggerated by relief and victory-fuelled euphoria," he said. //www.fxcentre.com/