The euro dollar exchange rate is 0.19pct lower on a daily basis, EUR-USD spot is at 13053 at 10:54 AM. The euro pound exchange rate is 0.31pct down, sterling has the upper hand at present and we see the spot rate at 0.8298.

In a morning exchange rate on the euro UBS analyst Gareth Berry focuses on the implications that falling oil prices will potentially have for the euro:


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"Oil continues to exert a secondary influence too. Newswires reported that discussions are underway to release crude from the strategic oil reserves of developed economies, but that no final decision has yet been taken.

"We note that the reserves were tapped last year in the wake of geopolitical tensions in Libya and 60 million barrels were released over a 30 day period. The price of crude fell sharply at the time, and we would not be surprised to see a similar reaction if the reserve is tapped again this time around. Falling oil prices would likely push EUR-USD slightly lower by reducing inflationary pressures in the Eurozone."

Speculation on co-ordinated action on oil prices was sparked by David Cameron last night after he said the option of released reserves is "worth looking at."

US and British officials told Reuters earlier that Obama and Cameron had discussed the possible release of oil reserves to help knock down spiking fuel costs that also threaten to undercut economic recovery.

Officials also said Britain would most likely agree to take action if the release was formally proposed by Obama, although any move to curtail rising oil prices had yet to be finalised.