21.08.2008 11:35

FOREX. Wednesday summary

The euro fell to near the lowest level against the dollar in six months as Germany's economic outlook deteriorated and crude oil prices declined.
The pound approached a two-year low versus the dollar as minutes of the Bank of England's August meeting indicated British inflation risks may have ``eased a little'' while the outlook for the economy worsened. The dollar has risen 8 percent versus the euro from the record low set in July.
The British pound dropped on the Bank of England's economic outlook.
BOE policy makers split three ways when they kept the target lending rate unchanged earlier this month, minutes of the Aug. 7 meeting showed today.
The dollar briefly erased its gain versus the yen after the Wall Street Journal reported that executives of mortgage-finance company Freddie Mac are scheduled to meet with U.S. Treasury Department officials today.
The euro fell as Germany's Economy Ministry said in its monthly report that growth will remain moderate.

EUR/USD failed to break above $1.4800 and retreated to $1.4690. Later rate rebounded to $1.4760/65, but again retreated to new session lows around $1.4670. Later rate recovered amid dollar’s weakness to $1.4750.
GBP/USD was dragged down from $1.8680 to $1.8635 before recovered to $1.8640.
USD/JPY rose from Y109.60 to Y110.10 before set back at Y109.70.

UK retail sales report is due to come at 08:30 GMT, while Canada is set to release its inflation data at 11:00 GMT.
US Jobless Claims traditionally comes at 12:30 GMT.
ButmainfocuswillbeonPhillyFed’sindex. Analysts expect index rebounded to -12.6 in Aug after -16.3 month earlier.