The euro remains above USD1.28 this morning, but the market appears unwilling to push the single currency too high ahead of eurozone and US data later today. At 0830, the euro was worth USD1.2803, while sterling was trading at USD1.8935. "USD1.2903 remains a target but there is still a reluctance to test the euro's upside, as a push past this year's lifetime high of USD1.289 could alert the attention of the ECB," said Geraldine Concagh, senior economist at AIB Treasury. The eurozone economy probably expanded 0.4pc in fourth quarter, the same pace as in the previous quarter, according to economists. The GDP report is due to be published at 11am.
Growth in the third quarter was driven by exports as the global recovery offset the stronger euro; the market will be watching today for any indication that the continued appreciation of the single currency has hurt the eurozone economy. In the US, the University of Michigan publishes its preliminary sentiment survey for February, while trade data for December is also released. A poor trade number should provide "another excuse" to sell the dollar, Concagh said. //www.fxcentre.com