The US dollar plunges further down today, hitting a new low with the Japanese Yen. USD/JPY is at 87.92, the lowest since August 1995.
A strong move was also made by the European currency – the EUR/USD moved 2.3% up to 1.437.
Only the pound failed to make a big move today, hurt by the Claimant Count Change which was lower than expected. Also other British data, such as the CBI Realized Sales hurt the pound. The forescast regarding the pung is dependant on the meeting minutes of the BOE. The unemployment rate data that is due soon will also impact the pound. It is expected to rise for the 10th consecutive month, and make the largest rise since 1992.
In the Eurozone, data indicates that the recession will stay deep into 2009, but the big question is if the ECB will continue to lower the interest rates. CPI levels in Euro zone, which are expected to fall 0.5% will probably set the anual inflation at a low level of 2.1% – indicating a further cut in interest rates.