The euro nudged ahead in early deals today holding on to gains made in late trading yesterday on the back of a disappointing manufacturing report for the US Midwest. At 0900, the single currency was trading up at USD1.1536, while against sterling, it was also up a touch at STG0.6980.
"Looking for a confirmation of a rebound in the US economy, markets will be closely watching this afternoon's manufacturing ISM, which is expected to move back above the 50 level for the first time since February," said Geraldine Concagh, senior economist with AIB Global Treasury. "However, after yesterday's Chicago PMI markets are set up for a disappointment. The eurozone's manufacturing PMI is also due this morning. It is expected to remain below 50, with Germany once against the main laggard," she added. Meanwhile, sterling could come under pressure as the session progresses following comments from the the Bank of England's new governor Mervyn King expressing concern that the currency's resurgence may hurt the economy. //www.fxcentre.com