The euro was stronger today particularly against the dollar and the pound. While there were no economic data releases today from the Eurozone to explain the move, there were some headline news which affected sterling and dollar.
With regards to sterling, the main focus today was on the Bank of England inflation report hearings during which Governor Mark Carney gave his testimony in the UK economy before the UK parliament’s Treasury Committee.
Carney remarked that the 7% unemployment target is merely a threshold and not a trigger for rising interest rates.
The pound initially held steady but soon eased against the dollar to trade below $1.6140 entering the US session. Early in the European session cable hit a high of $1.6193.
The euro is strong, gaining 0.14% against the dollar in the session to $1.3546, supported by a softer dollar. Disappointing US housing data yesterday weighed on the greenback. The dollar slid from an early European session high of 101.57 against the yen to the 101.40 area .
Focus today will be on more US data, on US building permits, as well as a report on housing starts. Following from this, the US is also to release private sector data on consumer confidence and house price inflation.
The euro was little changed against the yen, consolidating around 137.40, down slightly from a 4-year high of 137.97 hit on Monday.