The major currencies were little changed in late trading this evening as a directionless market looked in vain for leads. At 1700, the euro was trading at USD1.1685, while against sterling it was at STG0.7125. With little by way of significant economic data on the calendar either side of the Atlantic today, attention has shifted towards tomorrow's testimony by US Fed chairman Alan Greenspan.
The Fed chief will speak before the Joint Economic Committee and any explicit warnings about potential deflation will rekindle interest rate cut expectations, and deal another blow to the dollar. The single European currency yesterday fell within a whisker of the level at which it was born in January 1999 and analysts said it is only a matter of time before the euro-dollar upward trend resumes. Analysts also said that the Bank of Japan's intervention probably explains why euro-dollar gains have been unable to stick. //www.fxcentre.com