The euro weakened vis-à-vis the U.S. dollar today as the single currency tested bids around the US $1.4605 level and was capped around the $1.4700 figure. The common currency consolidated some of yesterday’s gains Data released in the U.S. today saw October headline consumer price inflation rise 0.3% m/m and 3.5% y/y, unchanged from September’s +0.3% gain, while core prices were up +0.2% m/m and +2.2% y/y. These data suggest that the spike seen in yesterday’s October PPI data have not yet transmitted through to the consumer price chain, and may afford the FOMC some room to ease monetary policy next month and possibly again in January, especially if the recent spike in energy prices does not result in significant inflation gains. The y/y core print of 2.2% is above the Fed’s perceived comfort zone, but the FOMC focus on core personal consumption expenditures. Other data released today saw weekly initial jobless claims rise 20,000 to 339,000 while continuing jobless claims fell 7,000 to 2.568 million. Also, the New York Fed’s Empire
 continued 
Euro Focus
 
Day's Change 52-Week High 52-Week Low

Instrument

Current

 Points % Date Value Date Value
Exchange Rates

15-Nov-07
EUR/AUD This marker indicates the current chart. 1.6440 0.0136 0.82% 15-Nov-07 1.6440 15-Nov-07 1.6440
EUR/CAD This marker indicates the current chart. 1.4363 0.0224 1.56% 15-Nov-07 1.4363 15-Nov-07 1.4363
EUR/CHF This marker indicates the current chart. 1.6425 -0.0038 -0.23% 15-Nov-07 1.6425 15-Nov-07 1.6425
EUR/GBP This marker indicates the current chart. 1.3988 -0.0031 -0.22% 15-Nov-07 1.3988 15-Nov-07 1.3988
EUR/JPY This marker indicates the current chart. 161.9100 -1.3700 -0.85% 15-Nov-07 161.9100 15-Nov-07 161.9100
EUR/USD This marker indicates the current chart. 1.4632 -0.0044 -0.30% 15-Nov-07 1.4632 15-Nov-07 1.4632
EUR/USD Fwd-1 Yr This marker indicates the current chart. -2.0000 0.0000 0.00% 15-Nov-07 -2.0000 15-Nov-07 -2.0000
 
Interest Rates

15-Nov-07
EUR 3M LIBOR This marker indicates the current chart. -  -  -  -  -  -  - 
USD 3M LIBOR This marker indicates the current chart. 4.8800% 0.0030% 0.06% 15-Nov-07 4.8800% 15-Nov-07 4.8800%
 
Indices

15-Nov-07
France CAC 40 This marker indicates the current chart. 5,561.13 -52.47 -0.94% 15-Nov-07 5,561.13 15-Nov-07 5,561.13
Germany DAX This marker indicates the current chart. 7,667.03 -116.08 -1.51% 15-Nov-07 7,667.03 15-Nov-07 7,667.03
NASDAQ This marker indicates the current chart. 2,629.63 -14.69 -0.56% 15-Nov-07 2,629.63 15-Nov-07 2,629.63
 

source: DTN Market Access

part 1...State manufacturing index saw current conditions fall slightly to 27.37 from a revised 28.75 in October. In eurozone news, ECB member Stark said the central bank does not want “abrupt changes” in the euro’s exchange rate and said EMU-13 inflation risks “appear to have increased and intensified recently.” Stark added the ECB is ready to act in a “firm and timely manner.” The ECB’s November monthly bulletin was released today and indicated it “stands ready to control growing inflation risks.” Data released in the eurozone today saw EMU-13 harmonized consumer price inflation at 2.6%, significantly above the ECB’s 2.0% target rate. Also, German October final consumer price inflation was up 0.2% m/m and 2.4% y/y. Germany’s DIW institute raised its Q4 GDP growth forecast to 0.6% and now sees 2007 growth around 2.7%. Euro bids are cited around the US$ 1.4575/ 1.4470 levels.

SUPPORT   RESISTANCE

 
L1.       1.4160 1.4780             
L2.       1.4045 1.4870 
L3.       1.3950 1.4990

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