Reply #28: Euro= USD 1.580, CHF 1.574 JPY 158.3 and GBP 0.792 at this time

[Ghost Dog]

ECB Weber: Euro Is Excessively Volatile Of Late
Fri, Mar 28 2008, 12:11 GMT
LUXEMBOURG (Dow Jones)--The euro is excessively volatile of late, European Central Bank governing council member Axel Weber said Friday.

"I generally don't comment on the euro's exchange rate level," Weber said, "but it has been excessively volatile in recent times."

/.. http://www.fxstreet.com/news/forex-news/article.aspx?StoryId=0a6aa164-8d61-4046-9bf7-301c5ca624e9

ECB's Stark: ECB Has Shown Itself Ready To Take Needed Steps
Fri, Mar 28 2008, 12:11 GMT
CAPE TOWN -(Dow Jones)- The European Central Bank has shown itself ready to take the steps needed to ensure the liquidity necessary for proper market functioning, ECB executive board member Juergen Stark said Friday.

"The ongoing market turmoil reminds us that no country is immune to shocks originating outside its boundaries," Stark said in a speech on monetary policy.

Euro-zone inflation was 3.3% in February, the highest rate since the introduction of the euro in 1999.

/... http://www.fxstreet.com/news/forex-news/article.aspx?StoryId=bc8fc8c6-b539-4383-886a-70d8920e33b3

Euro Remains Firm - But Is There Weakness Underneath?
Friday, 28 March 2008 11:17:10 GMT
...On the economic front Japanese data left many traders perplexed as both inflation and Retail Trade increased while overall household spending and labor demand deteriorated. It appears that while the Japanese economy continues to try to claw its way out of stagnation and deflation the progress is slow and uneven. The latest bump in unemployment may only make the consumer more cautious leaving overall household spending moribund for the time being. Household spending remains the lynchpin of the Japanese economy and unless it improves, the BOJ will remain on the sideline despite growing evidence that inflationary pressures are begging to percolate in the system

In Europe meanwhile, the EURUSD received a boost from more hawkish comments from Axel Webber who emphasized the price pressures in EZ were alarmingly high suggesting that the ECB will not consider any easing in the foreseeable future. Nevertheless, the latest data from Retail PMI readings revealed that consumer demand in the 17 member union may be starting to slow down significantly. The Retail PMI report slipped below the 50 boom/bust level for the second time this year, led lower by a sharp drop in Italian numbers which registered their worst reading since the survey began.

Italy remains the weakest link amongst the top 3 EZ economies and if the situation there deteriorates further political tensions in the region could begin to undermine euro seemingly relentless rise as the interests of Italy, Spain and other southern European members could come in conflict with those of France and Germany where growth continues at a healthy pace.

However, EZ political tensions are unlikely to become a major story just yet. In the meantime, markets will continue to focus on the state of the US economy with today’s Personal Income/Personal Spending once again key. If spending exceeds income it will suggest further deterioration in US consumer’s balance sheet position, and may push the EURUSD all the way to 1.5900 as recession fera reverberate. A better result on the other hand could quell some of the worry and spur a much needed dollar relief rally.

/.. http://www.dailyfx.com/story/dailyfx_reports/daily_brief/Euro_Remains_Firm___But_1206703056026.html?engine=rss&keyword=article