Euro continues to slide against the Dollar

The US dollar made good gains last night on the back of speculation that the Fed could begin tightening rates to fight inflation.

Oil fell by another $4 per barrel and equities performed well as the US government moved closer to approving the housing bill. There was concern as weak growth and rising prices with the latest beige book figures. 

The Euro continued to slide against the dollar as commodities fell and economic data weakened. May Industrial Orders were down 3.5%. Overall the EUR/USD traded with a low of 1.5670 and a high of 1.5798.

The sterling was boosted yesterday gaining against all the major currencies as the July MPC meeting minutes came in a surprising 7-1-1. MPC member Beasley voted for a rate hike, he was concerned that the threat to UK economy was medium inflation.