As reported at 10:30 a.m. (JST) in Tokyo today, the major world currencies -- the Euro, U.S. Dollar and the Japanese Yen – remain virtually unmoved today while markets worldwide await the European Central Bank’s word on a possible interest rate cut, and the statement that will be issued in tandem with the cut.
It is expected that the ECB will lower its benchmark interest rate to 1.0%, a record low, from its current 1.5% rate. The markets appear to also be waiting for information coming out of the G20 meeting being held in London. They’re waiting for word on global stimulus plans with a goal to fending off the worsening global economic decline.
According to one strategist in Sydney, though, the markets will remain in limbo, and there is little expectation of any volatility in advance of the ECB decision and the G20 meeting. Leaders at the G20 are expected to pledge their cooperation to formulate economic policy while boosting availability of funds to the IMF. From yesterday’s New York trading, the Euro remained steady at $1.3253, though not far off Monday’s 2-week low of $1.3113.
The U.S. Dollar also remained steady versus the Japanese Yen, trading at 98.50 Yen. The Euro, meanwhile, edged up slightly to 130.63 Yen, an increase of .1% after posting declines against the Yen over the past 2 days.