Euro gains from Japanese woes

MARKET NEWS

The euro gained ground last week on the back of economic problems in Japan, writes Matthew Clements, economist at Prebon Yamane in London

The European Central Bank effective exchange rate index reached its highest level for almost a month last week -- despite the ECB governing council’s failure to cut interest rates at its bi-monthly meeting. However, euribor futures contracts still imply a further 25 basis points rate cut by year end. The relentless flow of weaker economic data coming from t