Thursday, 7 November 2013

Euro Holds Gain Versus Peers Before ECB; Aussie Drops on Jobs



 The euro held yesterday’s gain against most major peers before European Central Bank policy makers meet today amid speculation the region’s economy isn’t fragile enough to warrant an interest-rate cut.

The euro yesterday halted a five-day drop against nine developed market counterparts tracked by Bloomberg Correlation Weighted Indexes, with ECB President Mario Draghi scheduled to speak after the bank’s decision. A gauge of U.S dollar strength remained lower, after falling yesterday, before data that may show an expansion in U.S. gross domestic product slowed last quarter. Australia’s dollar dropped against its 16 major peers after employment rose less than economists predicted.

The euro traded at $1.3503 at 9:54 a.m. in Tokyo, after yesterday rising 0.3 percent to $1.3513. The common currency fetched 133.29 yen from 133.31. The dollar was little changed at 98.72 yen. The Bloomberg U.S. Dollar Index, which tracks the greenback against 10 major currencies, was at 1,014.84 after dropping 0.3 percent to 1,013.48 yesterday.

The ECB will leave its main refinancing rate at a record low 0.5 percent today, according to 67 of 70 economists surveyed by Bloomberg News. Bank of America Corp., Royal Bank of Scotland Group Plc and UBS AG predict the central bank will reduce borrowing costs by 25 basis points.
(Source: Bloomberg)

No comments:

Post a Comment