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(CEP News) - Currency markets are relatively quiet as European markets remain closed in recognition of the Easter Monday holiday.
Weaker U.S. equity futures are not having a major impact on currencies this morning, as the euro trades in positive territory ahead of the North American open. Futures are down less than 1% before the opening bell. It has been a relatively volatile start to trading. During the Asian session EUR/USD hit its low at 1.3127 USD, but slowly recovered throughout the European session. The cross remains near session highs and is hovering in the low 1.32 range. Currency strategists from Brown Brothers Harriman said the rally in the euro has boosted the cross above the 100-day moving average, which could lead further shorter term gains. However, Matthew Strauss, senior currency strategist from RBC Capital Markets, is not very optimistic on further euro strength. He said they will be watching Thursday's CPI report, which could highlight future interest rate cuts from the European Central Bank. "We see core inflation falling to 1.3% y/y on Thursday - a low not seen since May 2005. Such an outcome would galvanize expectations of additional easing from the ECB at its next meeting," he said. First quarter earnings season, which is in full swing on Tuesday will also provide some risk to currency markets. According to some market strategists all eyes will be on Goldman Sachs, which will be reporting its earnings on Tuesday. If the data disappoints markets, risk aversion could provide broad strength against the U.S. dollar. Euro/USD up 0.52 cents to 1.3240 USD/CAD down 0.43 cents to 1.2218 USD/Yen up 0.23 points to 100.46 GBP/USD up 0.88 cents to 1.4760 AUD/USD up 0.54 cents to 0.7251 Euro/Yen up 0.80 points to 132.99 Euro/GBP down 0.14 pence to 0.8971 GBP/CAD up 0.38 cents to 1.8032 CAD/Yen up 0.44 points to 82.22 Euro/CAD up 0.09 cents to 1.6175 The U.S. Dollar Index is down 0.44 points to 85.34 All data taken at 8:08 a.m. EDT. By Neils Christensen,
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; edited by Nick Say,
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