Fundamental Outlook

The euro came off vis-à-vis the U.S. dollar today as the single currency tested bids around the US$ 1.3145 level and was capped around the US$ 1.3305 level. Minutes from the Federal Open Market Committee’s meeting that concluded on 18 March wer released in which the FOMC agreed on “substantial purchases of longer-term assets” and pessimisitcally said “further employment cutbacks” were expected. Some Fed officials saw inflation “below desirable levels” and Fed staff now see gross domestic product “expanding slowly” in 2010 with GDP growth “flattening out” in H2 2009. Fed officials said the economy is worse than thet expected and said there is a downside risk to the “already weak” economic outlook including more pressure on U.