Sterling
Sterling had a mixed day yesterday. It dropped below 1.1850 against the euro for the first time since February 2012 in the early morning but rallied throughout the day regaining most of the losses. It was the same story as the last few days as very poor manufacturing data continued to weigh on prices; but, picked up in anticipation of the Governor of the Bank of England speech last night. The UK remains nervous at the prospect of a triple dip recession and investors will look towards Fridays preliminary GDP data release for a clearer indication of the state of the UK's economy. Today, the key data comes out this morning, with both the minutes of last month's Monetary Policy meeting and unemployment data being released. Furthermore, David Cameron is speaking this morning and his speech is expected to make clear his feelings about Britain's continued involvement in the 27-nation European Union, with a referendum increasingly likely. Get in touch now for the latest news and trends.
The euro lost significant ground early in the morning versus its major trading partners on the rumours, (which were hastily dispelled hours later) that Jens Weidmann a representative to the ECB had resigned, which also sparked sudden losses in the German stock market. These losses - which saw the euro fall to its lowest level in 5 days versus the dollar; hitting a key support level at 1.3280 - were quickly erased as German Economic Sentiment came out considerably better than forecast, suggesting that economic health in the Eurozone's powerhouse is better than anticipated; thus increasing demand for the 17-nation currency. Today we see very little data released from the Eurozone bar consumer confidence figures, however, traders will look to digest the finer details from the ECB President's speech last night as well as looking elsewhere for influence. Call in now to see what impact this may have and to get a live price from your trader.
Euro
The US dollar had a mixed day against the euro yesterday with swings in both directions as data was released across Europe. Sales of existing homes in the US came out worse than expected; but, the reading still left total sales in 2012 at the highest level in the last five years. There is little information out of the US today; but, the first day of the 5 day World Economic Forum (WEF) annual meeting held in Davos takes place. This meeting is attended by a raft of influential figures including central bankers, prime ministers and finance ministers; and whilst some say you cannot expect any actual decisions to be made from these meetings, any comments from major players can cause volatility in the market. Rates can change quickly so get in touch for up to the second pricing and a live market update.
Elsewhere, the Japanese yen was the best performer yesterday as the first Bank of Japan meeting of the new Prime Minister Abe's term announced that it would be setting a new 2.0% inflation target; but, critically that it would delay introducing the unlimited monetary easing through additional asset purchases until 2014. The Hungarian forint struggled yesterday following a report from Goldman Sachs suggesting the currency would struggle as they predict its central bank will look to loosen monetary policy. Core retail data from Canada disappointed showing a 0.3% drop when slight growth had been anticipated. Australian inflation data was released over night and we also have the interest rate decision from the Bank of Canada later on today. Call in now to see how the market is trending.
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