Eurozone growth woes pushed the single currency to its lowest level since January on the yen and a near five-month US dollar low. However, the euro picked itself up somewhat in afternoon trade and at 1715 stood at USD1.0842, after falling as low as USD1.0765 earlier. Helping the single currency stabilise in later trade, US economic data on construction spending showed the highest level of outlays since January but the percentage increase fell short of forecasts. Other data on US mortgage activity and a weekly retail index were released earlier today, while financial markets were looking ahead to the Eastern Fed "Beige Book" report.
The OECD today cut in half its 2003 eurozone growth forecast in light of the dismal economic performances of France, Germany and Italy. The Paris-based think-tank said it predicts eurozone growth at 0.5pc for the calendar year, down from an earlier forecast for 1pc growth - a downgrade which prompted a euro sell-off. US growth, the group believes, will be 2.5pc this year, unchanged from its earlier report///www.fxcentre.com