The euro eased again this morning on speculation that economic data and corporate earnings today will show the US economy continues to improve. Overnight, Intel, Bank of America and Johnson & Johnson all topped consensus estimates, helping to boost equity markets in both the US and Europe. Corporate America remains in focus today, with Coca-Cola, General Motors and Kraft Foods - which provide pointers on the health of consumer spending - scheduled to report.
US retail sales probably declined 0.2pc in September, analysts say, but this is largely due to a slump in car sales. "Underlying demand, however, should remain healthy," said Geraldine Concagh, senior economist at AIB Treasury. At 1100, the euro was worth USD1.1687, down 0.45pc since last night. The single currency fell as low as USD1.1635 yesterday. The euro is under pressure despite comments by US president George Bush that the market should set exchange rates, effectively a call for the Japanese authorities to stop intervening in the market to weaken the yen. Analysts say the comments are another indication that the US is only paying "lip service" to the strong dollar and would prefer a weaker currency. //www.fxcentre.com