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Bank of England and ECB rates decision on Thursday...

Discussion in 'Forex Daily News & Outlook' started by prav, Jul 4, 2007.

  1. prav

    prav Moderator
    Staff Member

    Apr 28, 2007
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    The Dollar hit another 26-year low against Sterling, which has been steadily gaining ahead of an expected rise in interest rates by the Bank of England on Thursday. The European Central Bank also meets Thursday, and is expected to keep rates on hold, but signal further monetary tightening is ahead. Most analysts expect the Fed to leave interest rates on hold until late this year, adding that interest rates and growth differentials continue to conspire against the Dollar. In thin trade ahead of the July 4th Independence Day holiday the main focus on the economic front was an index of US Pending Home Sales, which slumped sharply in May to its lowest level since September 2001. Investors will get a further handle on the state of the US economy on Friday with the government's non-farm payrolls report, the most closely watched barometer of the health of the labor market. A solid reading could lure investors back to the Dollar.


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