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Wednesday, 2 Mar 2011
EUR Still Bullish, Struggling from Depressed Risk Appetite
The euro inched up on Wednesday, driven by expectations of higher official rates, although subdued risk appetite is likely to put a lid on gains and keep the dollar off a 3-1/2 month low versus a basket of currencies.
European Central Bank policymakers meet on Thursday, and with euro zone inflation well above its target, markets see the central bank sharpening its anti-inflation rhetoric.
But gains in the common currency risk a correction as geopolitical turmoil continues to fuel uncertainty and higher energy prices, causing stocks to tumble on Wednesday.
