Reuters: US Dollar Report: GLOBAL MARKETS-ECB rate cut talk pressures euro, lifts Bunds

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GLOBAL MARKETS-ECB rate cut talk pressures euro, lifts Bunds May 16th 2013, 07:29 Tweet Share this Email Print Related Topics Stocks » Currencies » Markets » Cyclical Consumer Goods » Financials » Industrials » Thu May 16, 2013 3:29am EDT * Euro slides 0.2 against dollar on rate cut talk * European shares steady near multi-year highs * Euro zone inflation data to reinforce policy easing view By Richard Hubbard LONDON, May 16 (Reuters) - The euro slipped against the dollar and German bond prices rose on Thursday on investor positioning for more monetary easing by the European Central Bank following a run of weak economic data. Those expectations are likely to be reinforced when euro zone inflation data for April is released at 0900 GMT, which is expected to show an annual rate of just 1.2 percent, well below the central bank's target range. "I think it will confirm in everyone's mind there is no inflation risk," said Sarah Hewin, senior economist at Standard Chartered Bank. The euro slipped 0.2 percent to $1.2860, having hit a six-week low of $1.2843 on Wednesday. The main German bond futures contract was 10 ticks higher at 144.78. European shares were supported by the rate cut expectations but opened little changed after hitting fresh multi-year highs on Wednesday. The FTSE Eurofirst index of top European shares was 0.1 percent lower in early trade. Earlier, Asian markets had risen on news that Japan's economy grew 0.9 percent in the first quarter, the quickest pace in a year and beating expectations for a growth rate of 0.7 percent. "There's now proof that Abenomics is working and that the economy is on a solid footing." said Yoshiki Shinke, senior economist, Dai-Ichi Life Research Institute in Tokyo. However, Japan's Nikkei index ended down 1 percent after having hit a fresh 5-1/2-year high though it is up nearly 44 percent so far this year. Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.

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