The euro opened in New York (8:00 am) at 1.3760, as yesterday, within points of the European low at 1.3754.
A full plate of U.S statistics, PPI and retail sales at 8:30 am and Case/Shiller Home Prices at 9:00 am had no impact on trading with the euro moving between 1.3756 and 1.3773. Even the much weaker than forecast October Conference Board consumer confidence number at 10:00 am (71.2 vs. 75 and 80.2 September) did not dent the U.S. dollar which barely budged from 1.3758 after the release.
It took a comment from Ewald Nowotny ECB governing council member and head of the central bank of Austria to break the stalemate. He told Market News International there was no realistic prospect of the ECB lowering its refinancing or deposit rates and that while he doesn't welcome the recent appreciation of the euro, policymakers "have to live with" it because the ECB does not have any tools to counter it. In the next 30 minutes the euro surged from 1.3764 to 1.3813, with an initial 20 point run in one minute setting the tone.
But even with that inspiration the euro could not hold its ground and with the dollar in demand against other currencies those who went along with the news soon began selling. Within 20 minutes of top the euro broke back below 1.3800 and from there it was an hour long sale to the bottom at 1.3740 just after the London close.
There was a short consolidation around 1.3750 followed by another test lower which reached the day's low at 1.3737 before trading petered out with a close at 1.3746.
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