The U.S. Dollar tried to mount a rally throughout the day, but failed at the close and ended up mixed for the day against most major currencies.
The EUR USD finished lower but off its lows. A late session stock market rally helped to boost demand for higher risk assets which buoyed the Euro. Tomorrow the European Central Bank meets to discuss monetary policy. Expectations are for the ECB to leave interest rates unchanged at 1.0% and call for the continuation of its stimulus packages. ECB President Trichet wants to see a solid recovery in the global economy before ending any of its stimulus plans.
Look for the Bank of England to leave its benchmark interest rate unchanged at 0.50%. Weakening fundamentals continue to keep the pressure on the BoE to maintain its low interest rate policy. Traders also expect the BoE to leave its asset-buyback program unchanged.
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