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Euro traded near a one-week high against dollar before reports forecast to show European consumer confidence rose and an index of U.S. leading indicators gained, adding to signs the global recovery is strengthening. This morning euro erased its gains against dollar, declining 0.1 percent to $1.3555. Europe’s shared currency declined against 13 of its 16 most actively traded peers. On Friday we will see how much the German Producer Prices Index rose last month, compared to December.
EUR/GBP: BOE facing mounting pressure to raise interest rates
Sterling fluctuates against euro before the release of a U.K. gauge of factory sentiment. Britain’s currency slumped yesterday against all of its 16 most-actively traded peers after Bank of England Governor Mervyn King said borrowing costs may need to stay at a record low to revive the economy. The Bank of England has faced mounting pressure to raise interest rates from a record low of 0.5 percent after inflation exceeded its target for more than a year. A Feb. 15 report showed consumer prices jumped 4 percent in January from a year earlier, forcing Bank of England Governor to explain why it remains above the 3 percent upper limit.