The euro dollar exchange rate is 0.510% lower with 1 EUR = 1.4434 USD. The euro pound exchange rate is 0.059% lower with 1 EUR = 0.8836 GBP. The euro dollar exchange rate is trading at almost a two month high, with weak US data fuelling hopes of QE3. The US Dollar, a key safe haven currency, has found the going tough as investors return to so called risky assets such as equities. The euro usually benefits from this kind of investment environment. Also causing some concern is news that US home sales data was poor yesterday and Friday’s GDP and consumer sentiment figures were weak. More of the same is expected from today’s US consumer confidence data. There is a feeling that the US economy has to slowdown further in order to force the Fed’s hand on QE3. But with US figures on a steady downtrend, the measure remains a distinct possibility. EUR USD is trading close to $1.45 this morning, and will face some considerable resistance at these levels. Nonetheless, with US equities strengthening (thus weakening the dollar), the euro may be able to maintain its momentum. Elsewhere we see that the British Pound Sterling has found the going tough as investors move their cash into equities; a scenario that has proven to be Pound-negative considering the pound has been enjoying a period of strength based on a newfound reputation as being a safe asset. "Last Friday’s session saw the release of some important UK and US GDP numbers. The revised Q2 UK growth figure remained at a disappointing 0.2%, though this was in line with market expectations. We also had the preliminary Q2 GDP figure from the US, which undershot expectations," says Richard Driver, an exchange rate analyst at UK money transfer company Caxton Fx. Today’s session brings some US consumer confidence data but more importantly, we have the US Federal Reserve meeting minutes released at 19:00 this evening.

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