The euro continues to hover just below the USD1.15 level as the dollar/yen rate holds in a tight range. Despite last week's statement from the G7 on flexible exchange rates, dealers remain reluctant to buy the yen aggressively on fears of intervention by the Bank of Japan. At 0930, the euro was trading at USD1.1475, while the dollar was holding at 112 yen, having risen to 112.25 yen earlier after a massive earthquake measuring 8.0 on the Richter scale rocked northern Japan.
The market is also holding its ground ahead of the release today of the final revision to US second quarter GDP as well as the final Michigan consumer sentiment index for September. Geraldine Concagh, senior economist at AIB Treasury, said the GDP data should see the growth rate for the period unchanged at 3.1pc, while a mild upward revision is anticipated in the Michigan index, which may help Wall St recover from two consecutive losses. Meanwhile, among commodities, gold slipped 80c to USD383.25 per ounce having spiked above USD388 earlier in the week after OPEC unexpectedly cut its oil quota. At 0930, brent crude in London was unchanged at USD26.81 per barrel. //www.fxcentre.com