FX Update: Euro strength has been the main show in town
FX Update: Euro strength has been the main show in town today, with the shared currency showing a 0.4% gain versus both the dollar and yen going into the New York open. The euro was also up 0.6% versus sterling, and 0.7% against the Canadian dollar. The U.S. dollar was mixed, down versus the euro, flat against the yen, but up against sterling and the Australian and Canadian dollars. Supporting the euro were hawkish-leading remarks by ECB's Weidmann, who said that a rate hike should not be left "too late" when the time to tighten comes, while data showed German import inflation rising to a four-year high in November. In other markets, oil prices were down for a second day, extending declines seen after data yesterday showed an unexpected rise in U.S. inventories and after Libya announced a sizable supply increase. Stocks in Europe and U.S. index futures were modestly lower.