EURO

The European central Bank Executive member, Lorenzo Bibi Smaghi, made comments on Tuesday that confirmed that the ECB was ready to lower interest rates to 0 should deflationary signs continue to be visible. Despite this, the Euro had a good session, continuing to make gains against some of the majors it has suffered against in recent weeks. Forex broker analysts attribute the bounce in the Euro to an increase in risk appetite, however these gains are not expected to last as banking worries and continued decline in the global economic environment are expected to push investors back into safe-havens like the US Dollar.

At 6pm GMT, the Euro was up 1/4% to the Japanese Yen at 124.81, up more than 1/2 to the British Pound to .9203 and up 3/4 to the Swiss Franc to 1.4699. The Euro fell nearly 1% to the Canadian Dollar to 1.6271 and more than 1 1/4% to the Australian Dollar to 1.9682.