USD Declines Sharply

The dollar was sharply weaker versus the euro and sterling in the Thursday session.

The selling in the greenback was likely the result of a combination of speculation of central banks, particularly the UAE and Asian CBs, shifting reserves from dollars, and rumours of US Treasury Secretary John Snow being removed from his post.

According to a NY Times report, the new White House Chief of Staff Bolten would prefer to have a more aggressive Treasury Secretary to deliver the administration’s message.

Economic data from the US saw the final Q4 GDP in line with forecasts, up 1.7% compared with 1.6% in the preliminary reading. Weekly jobless claims slipped by 10k to 302k.



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