Euro currency continued to hover around the $ 1.34 before Thursday noon meetings eagerly awaited, whether the ECB earlier or the European Council this evening. At this time, the euro cup of 0.21% 1.3388 against the dollar after a session high of 1.3430 at.
Against the yen, the euro was down 0.41% to 103.6, when it yields 0.19% against the Swiss franc at 1.2365 and 0.13% to 0.8528 against the pound.
The Bank of England will also make known its position on interest rates just before the ECB. She had to keep them at 0.50%.
“A joint letter containing the proposals of Angela Merkel and Nicolas Sarkozy, including a base harmonization of corporate tax, a tax on financial transactions, coordination in the labor market and a convergence of policies to support growth, was sent to Mr. van Rompuy “remind traders of Pictet & Cie this morning.
The euro area has also received support from the U.S. Treasury Secretary yesterday, Timothy Geithner.
At the meeting of the ECB, in a little over an hour, CM-CIC and Aurel BGC expect a decline in short rates, currently at 1.25%, at least 25 basis points when Jyske Bank expects just 25 points, as traders of Pictet & Cie.
The ECB should also confirm that it will further relax interest rates and allocate unlimited liquidity to commercial banks. “That should be enough to close the gap in rates between the euro and the dollar,” said Jyske, for whom the dollar thus has a potential decline against the euro.
That said, the side of the bank in Frankfurt, “we do not expect returns on buybacks in the secondary market. The ECB should not close the door to future interventions but it is conditioned to the negotiations between European leaders, “said CM-CIC, agree on this point with many stakeholders as Barclays Bourse.
Regarding the EU summit that begins tonight with a dinner, according to Jyske, nothing important is to wait before the second day of the meeting, tomorrow, Friday. “It will not give too much importance to some announcements that will be performed today,” say traders.
Loaded on the side of Europe, the news looks thinner on the other side of the Atlantic, which will first be unveiled registrations weekly unemployment benefits. The consensus at this time of 395,000 “entries”, against 402,000 the previous week. Then, wholesale inventories should, in October, having increased by 0.3%, after falling 0.1% the previous month.
