According to a report by Bloomberg News, the Euro has risen to a new high versus the greenback; this is just ahead of an ECB meeting on interest rates.
Both the Bank of England and the European Central Bank are expected to keep interest rates on hold amid rising inflationary pressures.
Meanwhile, European bourses were lower for the third time this week on poor performance in the financial sector. The harbinger of that downturn – market participants speculate there are more writedowns to come in the wake of the subprime debacle, which some analysts say has yet to hit the bottom.
Also troubling banks and insurers, bond insurer Ambac Financial is expected to lose its credit rating despite efforts to shore up capital for the troubled firm.
Another stock taking a dive in banking, UBS fell to its lowest levels since 2003 after J P Morgan Chase reported that the largest European bank supposedly sold $24 billion in holdings in a "fire sale," reports Bloomberg.