The dollar is in slightly better shape this morning talk swirls that the other G7 members will join the effort to clean up the banking mess (though the Times downplays the talk). Also helping was a further drop in the flash PMI out of the eurozone this morning to a five year low at 48.2. This, along with the financial turmoil, has upped the odds of the ECB finally dropping their inflation vigil, the thinking goes. Oil prices are lower by a few bucks in the November contract which, while it rose yesterday, did not do the Roman candle routine that the October contract did at expiry.
We’re told this morning that Goldman Sachs economist Jim O’Neill is out on the limb with us, saying the US bailout package will not spark a further dollar rout, via Bloomberg.
The US picks up the baton at 1.4765 and 105.50.
