- US Dollar Euro (USDEUR) exchange rate currently trading at: 1 USD = 0.7190 EUR (+0.00067, +0.094%)

As the pound managed to hit a new peak against the dollar, the euro made a similar advance to hit $1.40, its highest level since January but was unable to sustain the level, dropping back to close unchanged on the day.

The major news on the market radar yesterday was the ECB, which left interest rates unchanged, as was widely expected. Trichet’s announcement yesterday also came as no surprise, indicating more or less that excessive currency volatility would be best avoided.

US Dollar Euro (USDEUR) Exchange Rate

As the ECB indicated that it would not take monetary easing measures anytime soon, it gave the euro a chance to rally up to $1.40, but of course that price level proved unsustainable, and the euro fell again to $1.39 this morning after a round of profit taking. There is still considerable downside risk to the dollar at this point.

Today’s other Forex news:

British Pound US Dollar (GBPUSD)
Sterling saw a rise above $1.60-levels yesterday for the first time since February. But at this level there was considerable profit taking, which drove the price back down to around $1.5850. Sterling was able to break the $1.60 barrier thanks in part to better than expected UK factory production numbers and the BoE’s decision to hold back from taking further monetary easing measures.

British Pound Euro (GBPEUR)
It was a wash yesterday for sterling, which closed the day virtually unchanged against the euro. Yesterday’s minimal gains and loses were the result of both positive and negative data released in the UK, both a record drop in house prices and a larger than expected strengthening in the manufacturing sector.

We will continue to monitor the US Dollar Euro (USDEUR) exchange rate throughout the day.