The euro eased a touch in early deals today, although widespread pessimism over the US economy is expected to weigh on the dollar as the session progresses. At 0900, the single currency was trading at USD1.1011, while against sterling it was up at STG0.6922. Yesterday's afternoon bounce in the dollar on the back of better than expected durable goods data proved to be short-lived. The numbers were overshadowed by the release of weekly initial jobless claims, which came in at their highest level for over a year, highlighting the weakness in the US labour market.
Majors consolidated overnight and although some modest dollar buying was reported, downside risks remain. US stocks also reversed some of their earnings fuelled gains as the weak jobless claims data, SARS related worries and North Korean tensions undermined market sentiment. Looking ahead, Geraldine Concagh, senior economist with AIB Global Treasury, said, "Today sees the release of advance Q1 GDP, which is expected to show a 2.0pc growth rate, and the final Michigan sentiment survey for April, which should improve from the initial estimate of 83.2." //www.fxcentre.com