Euro strength divides market opinion

AS the euro continues to threaten new highs against the dollar eyes are increasingly focussed on a rate cut from the European Central Bank.

Having hit a new high of $1.1914, the strongest level since its flotation four years ago, the euro lost some ground to the dollar as markets reopened in the US after the bank holiday weekend.

By late yesterday afternoon the dollar was trading at $1.1852 as some support for the dollar re-emerged in the markets.