The euro eased a touch in early deals today after reaching a fifth consecutive lifetime high against the dollar yesterday. At 0900, the single currency stood at USD1.2422, while against sterling, it was ahead at STG0.7092. "Dollar sentiment remains weak with USD1.25 still looking to be easily within reach before year end," according to Geraldine Concagh, senior economist with AIB Global Treasury. With no US or European data due for release today, trading is expected to be subdued as dealers wind up positions ahead of the Christmas holiday.
However, the euro is likely to continue reaping the benefits of comments from European monetary officials, who yesterday offered their support for a stronger euro, tempting markets to take it even higher. ECB president Trichet went as far as saying that he was "rejoicing" in the fact that the same policy was being pursued on both sides of the Atlantic. Meanwhile, sterling dipped briefly on November's weaker than expected retail sales data, taking it down from its 11-year high against the dollar. It remains well supported however, on expectations that the Bank of England will continue to hike interest rates in the New Year.//www.fxcentre.com