The euro has edged slightly higher against the dollar this morning, following a dip last night on the back of comments by US Treasury Secretary John Snow. The US currency gained after Snow said in an interview that the forex market was mistaken in believing Washington welcomes a weak dollar as a way to boost exports and stem a decline in manufacturing jobs ahead of the national elections next year. At 0930, the euro was worth USD1.1642, up from USD1.1625 overnight. The dollar fell back below 110 yen, to 109.87 yen. Meanwhile, sterling remains well supported against both the single currency and the dollar following recent data suggesting that the Bank of England will be amongst the first of the major central banks to raise interest rates.
"Data due for release this week, including Friday's preliminary Q3 GDP data and retail sales for September, are expected to support this view," said Geraldine Concagh, senior economist at AIB Treasury. In addition, the minutes of the last Bank of England policy meeting, due tomorrow morning, are expected to be hawkish in tone. //www.fxcentre.com/