Euro slips ahead of the Franco-German summit The US dollar came under pressure yesterday against a basket of currencies after weaker than expected economic data from the US. Empire State Manufacturing Index in August revealed a drop to -7.7 from a previous -3.76. Further weighing on the greenback was a report from Treasury International Capital which showed that foreigners purchased the fewest long term securities in more than two years. Versus the Swiss franc, the dollar took a tumble trading as low as 0.7769 from 0.7997. Against the Japanese yen, the dollar is trading in a tight range around 76.80. The euro dropped against the dollar today ahead of the Franco-German summit. Investors are focusing on whether the summit will result in further measures to help tackle eurozone's debt crisis. German Gross Domestic Product showed a 0.1% gain in the second quarter lower than market expectations further pressuring the single currency. On Monday, the euro got a boost on news that the European Central Bank spent 22 billion euro on government bonds as well as gains in world equities. The pair dipped to 1.4402 from a three-week high at 1.4476. Focus turns to President Nicolas Sarkozy and German Chancellor Angela Merkel news conference at 16:00 GMT. The British Pound eased to 1.6334 against the dollar from a one week high at 1.6409 supported by a relatively firm risk appetite. Focus turns to Consumer Price Index expected at 08:30 GMT. Oil prices rose to 88.02 dollars a barrel from 84.38. Gold edged higher to 1769.40 dollars an ounce from 1732.39. Silver also ticked higher to 39.91 dollars an ounce from 38.66.

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