The News Review:

- Forex – Pound falls below 2 usd as MPC members say sterling set to…
- Forex – Euro soars on Trichet comments, strong Ifo; pound sinks on…
- Forex – Dollar extends fall vs yen in afternoon trade on Japan…
- Forex – Euro rises on stronger-than-expected Ifo

Forex – Pound falls below 2 usd as MPC members say sterling set to…
Forbes – Mar 26, 2008
Speaking before the Treasury Select Committee, Bean said given the size of the UK current account gap, ‘sterling is likely to move to the downside’. BoE governor Mervyn King said the Monetary Policy Committee is not ‘indifferent’ to the value of the pound when considering its policy options because of its impact on inflation. The pound’s falls were exacerbated when King, asked if tighter lending conditions made interest rate cuts more likely, replied ‘yes’. ‘Bean’s comments on the pound look to have set sterling sliding and King’s subsequent comments had added to this,’ said Mitul Kotecha, currency strategist at Calyon.

Forex – Euro soars on Trichet comments, strong Ifo; pound sinks on…
Forbes – Mar 26, 2008
ECB President Jean-Claude Trichet told the European Parliament he expects inflation in the 15-nation single currency area to remain significantly above 2 pct for most of the year. This contrasted with previous comments where he forecast inflation to remain elevated in the coming rates but gradually moderating later in the year. Julian Callow said his comments give ‘no signals of any prospective reduction in interest rates’, helping the euro recover most of its losses made against the dollar over the past week. The euro’s surge was initiated by figures from Germany’s Ifo institute whose business climate index climbed to 104.

Forex – Dollar extends fall vs yen in afternoon trade on Japan…
Forbes – Mar 26, 2008
Japan’s overseas shipments rose 8. 7 percent in February from a year earlier, faster than the 7. 6 percent growth in January, as rising exports to Asia and Europe made up for the continueddecline in sales to the US, according to a government report today. Rising exports eased concerns that a strong yen will cut demand for Japanese goods and hurtthe world’s second largest economy.

Forex – Euro rises on stronger-than-expected Ifo
Forbes – Mar 26, 2008
The Ifo institute’s business climate index rose to 104. 8 in March from February’s 104. 1, confounding analyst expectations for a fall to 103.