The dollar and euro trade punches

The dollar and euro seemed to trade punches yesterday in a very volatile day on the currency markets. The greenback initially fell in its fifth straight session against the euro hitting an all time low at $1.5275, but then staged a storming comeback in mid afternoon, clawing back 2 cents against the single currency. It was a similar story against sterling as a 1 cent loss earlier in the day was soon made back before the close. The ISM’s headline index of manufacturing activity in February dropped to 48.3, its lowest level since April 2003. In further bleak news for the US economy, official figures showed that construction spending tumbled by 1.7% in January, in its sharpest drop for 14 years.
No data today but plenty of speakers: Fed Chairman Bernanke to speak at 2.00pm, Fed’s Fisher & Mishkin to speak at 6.00pm.