London, Mar. 7, 2008 (Thomson Financial delivered by Newstex) — The euro was trading just off a fresh all time high against the dollar as odds of a rate cut in the 15-nation single currency zone looked increasingly bleak, while rumours circulated the markets that an emergency US rate cut could come this afternoon.
The euro rose above 1.54 usd for the first time earlier this morning, on market talk that the US Federal Reserve may cut its key Fed Funds rate after the release of this afternoon’s crucial non-farm payrolls data. The currency hit a record high of 1.5429 usd before falling back on profit taking.
The euro has surged against the dollar in recent days as their respective interest rate outlooks continue to diverge.