The major currencies were trapped within relatively narrow trading ranges in early deals today as the approaching Easter holiday begins to make itself felt in subdued activity levels. At 0900, the euro was trading up a touch at USD1.0836, while against sterling it was at STG0.6890. The dollar is caught between strong corporate earnings data and some disappointing economic figures. Industrial production data released yesterday were weaker than had been expected. According to Jenny Pollack, senior economist with AIB Global Treasury, the same factors look set to dominate again today as the Q1 corporate earnings season continues while, on the economic front, US inflation and housing starts data are due.
European focus today will be on the eurozone inflation data. There are hopes that the annual inflation rate will edge down from the earlier flash estimate of 2.4pc. However, Pollack warned, "Even if it does, though, this would be unlikely to revive hopes of an imminent rate cut which were dashed by the tone of weekend comments from Wim Duisenberg." ///www.fxcentre.com