Euro up ahead of European Central Bank rate decision
The euro continued to climb higher against the dollar today, ahead of the European Central Bank’s decision about interest rates tomorrow. It is widely expected that the ECB will raise interest rates, the first time since June 2007.
The dollar had seen a brief boost on Tuesday after better than expected ISM manufacturing data was released, but this was short lived as traders remain unconvinced that the US economy has turned a corner.
Traders today were turning their attention towards the ECB’s interest rate decision due tomorrow. Analysts expect a rise of 25 points to 4.25%, in a bid to offset rising inflation strain. The pound also fell to a 23 day low against the euro, over concerns about the UK retail and construction sectors.
Marks and Spencer suffered as their shares fell by a huge 20% after it was released that like-for-like sales were down 5.3% in the past three months. A Marks and Spencer statement said the conditions on the UK high street were “challenging”.