No New Data Causes FX Pairs Flat Line

Major FX pairs were deadlocked today in the absence of any new data. There were, however, a number of presentations from ECB members, as well as one from Alan Greenspan. It would seem that both banks are keen to raise rates at their next meetings. Greenspan's hawkish comments to a private Lehman Brothers meeting seeped into the market early in the afternoon, though the greenback was unable to hold-on to any significant gains. Many now feel that the peak rate is something over 5%, possibly 5.5%.