Euro Aims for $1.40
Author: Andrew J. Johnson</br></br>NEW YORK--A hawkish tone from European Central Bank President Jean-Claude Trichet at the central bank's policy meeting this coming week could push the euro toward $1.40, analysts expect, but the impact of Middle East upheaval on currencies remains a wild card.</br></br>The dollar will likely remain under pressure as market participants mull whether the U.S. Federal Reserve could extend its quantitative-easing measures, after some weaker-than-expected U.S. growth data. The Federal Reserve is also likely to keep interest rates low for an extended period, a view that may be underscored by Fed Chairman Ben Bernanke's testimony for lawmakers scheduled for Tuesday and Wednesday.</br></br>The end of the week brings the all-important monthly U.S. employment report.</br></br>St. Louis Federal Reserve President James Bullard, a nonvoting Fed member this year, said Thursday that a third Fed bond-buying effort isn't off the table, given tensions in the Middle East and rising oil prices as well as ongoing concerns about the financial health of some euro-zone governments, all of which could weigh on global economic growth.