The euro has tumbled by nearly a cent against the dollar today in what is seen as just a temporary respite from its recent relentless rise. Analysts say profit taking by traders was behind the fall to USD 1.1355 tonight from USD 1.1445 earlier in the day. Most market commentators say, however, that they expect upward pressure to return soon because of an ongoing quest for yields. "There has been some profit-taking on yesterday's sharp euro advance, but the correction has been shallow and looks likely to be short-lived as the dollar bears remain in control," said HSBC.
Earlier today, eur/usd moved as high as 1.1445. That was on the back of Fed hints yesterday of a rate cut next month//www.fxcentre.com/