Euro Rises to New Session Highs

By Marc Chandler

The two key events of the day are passing with little fanfare in the currency markets. The weekly initial jobless claims in the U.S. slipped enough to lower the four-week moving average for the first time in a little more than a month, but it remains too close to 500,000 to ease anxiety very much.

The European Central Bank left rates on hold and revised its growth and inflation forecasts higher. The lending facilities have been extended, and the ECB will conduct special operations later this month to help ensure a smooth expiration of the large long-term refinance operation.

There is little surprising here, and after initially easing on the news, the euro has firmed back to new session highs -- amid talk of leveraged account purchases. Equity markets firmed and general risk-on trades are coming back to the fore, except it does not appear to be helping the dollar against the yen or Swiss franc. Sterling remains a laggard after a string of soft data. The Australian dollar is also not participating in the move against the greenback, but is seeing earlier losses pared.

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