EUR/USD Performance Chart as at 3:30 a.m. Singapore time, 04/05/11

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HISTORICAL DETAILS 

% Change

1 Wk 1.32%

1 Month 4.21%

3 Months 7.43%

6 Months 5.72%

1 Year 11.61%

 

52 WEEK

High 1.4902

Low 1.1877

 

BLOOMBERG MEDIAN FORECASTS

Q2 2011 1.43

Q3 2011 1.39

Q4 2011 1.38

Q1 2011 1.35

 

DAILY DETAIL

The dollar is nearing a 17-month trough against the euro as expectations US interest rates may stay low indefinitely dulled demand for the greenback. The European Central Bank raised rates last month for the first time since 2008 and is expected to do so again this year, though traders expect it to stand pat when it meets this week. As of this writing, the euro was up 0.4% at $1.4874, more than a cent above its session low and near Monday's 17-month high above $1.49. [1] The pairing’s recent story has been about divergent rate expectations; the Fed is on hold and now that the BoE may be coming out of the picture, the ECB is uniquely the only major central bank expected to raise rates, and that benefits the euro. Emerging market currencies, which unlike some majors are far from overvalued against the dollar, will also continue to appreciate, which will keep the dollar under pressure. Paolo Palazzi-Xirinachs, Chicago

 

Notes: Sources: [1] Reuters (3 May 2011), [2] Bloomberg News UK (3 May 2011), [3] Sydney Morning Herald (3 May 2011), [4] New York Times (3 May 2011). Chart data supplied by Bloomberg.