EU Leaders Mentioned Forex In Unprecedented Move

Instead of just letting central bankers and finance ministers do the talking about the forex markets and currencies, European Union leaders on Friday have taken the liberty to voice their concerns to the media after a 2-day summit - a never-done-before move. Usually it is just the French President Nicolas Sarkozy voicing his concerns about the surging Euro, but now other leaders are putting out the same message. The leaders said in a statement, “Excessive volatility and disorderly movements in exchange rates are undesirable for economic growth. In the present circumstances we are concerned about excessive exchange rate moves.” EU diplomats said the leaders had never made such a statement following a summit. The EU will make a series of proposals at a meeting of finance officials from the G7 in Washington, DC, next month and they will also discuss the forex markets in that meeting.

Consumer Confidence

The Reuters/University of Michigan consumer sentiment index fell to 70.5 from 70.8 in February. Although this is higher than the forecast reading of 69.3, it is the lowest reading since February 1992 and compares with an average 85.6 in 2007.

Forex Trading

USD/CHF successfully broke 60 pips below 1.0050, the parity level, to an intraday low of 0.9985, exceeding initial target of 1.0000. Recall the videocast I did late late year about the possibility of Swissy reaching parity? That has now happened. EUR/USD reached another high around 1.5690.

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Comment by Tillo

2008-03-14 18:29:58

1.6 for the EUR/USD

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