Euro hit by Draghi concerns

Today's Highlights

Sterling buoyed by borrowing data

Euro hit by Draghi concerns

FX Market Overview

So UKIP proved the doubters wrong and took Rochester and Strood with the help of some ill-advised tweeting from the shadow Attorney General. That was roughly as expected. But, on the subject of Europe, I was surprised to hear Sir James Dyson endorsing a European Union exit on the radio this morning. His concern over Germany's domination of EU business regulations was interesting. The Europe/immigration debate is clearly going to be a mainstream part of next year's general election. Interestingly enough, Immigration was also the main topic for President Obama last night and he has come under attack for offering 5 million undocumented immigrants protection against deportation if they identify themselves to the authorities.

In the financial world, improved business sentiment in America gave the USD a boost yesterday. The Philly Fed Business Outlook index was way above the market forecasts. At 40.8, the November figure was more than twice the 18.5 most analysts expected to see. That's the highest reading since December 1993. However, that was counterbalanced by some poor data elsewhere and mediocre housing figures. The Sterling -n US dollar rate is still stranded around the $1.56 level but it has scope to recover if UK data can start to pick up again.

Today started with a speech by ECB President Mario Draghi who struck a cautious note about slow growth and stagnant inflation within the EU. He fears for that kind of poor performance becoming the norm. We saw the euro drop in value as he spoke but the effect hasn't lasted. That is all we will hear from Europe today so I suspect the euro will come to a slow halt and settle into the weekend.

This morning's big news for the Pound was the government borrow statistics. These reflected borrowing of just over £7 billion; below last month's £10.5bn and a shade higher than the market forecast of £6.7bn. Sterling too a little bit of comfort from the news and the Pound has regained a little composure in early trade. Traders will now be looking forward to next week's UK economic growth statistics for the third quarter of the year. Anything above 3.0% will be very positive for the Pound.

This afternoon brings Canadian inflation data which may well buck the trend and show a small uptick to 2.1%. If so, the Canadian Dollar has the scope to strengthen alongside the buoyant US Dollar.

Away from the markets, beware what you write in reviews. A couple who described the Broadway Hotel in Blackpool as a "rotten stinking hovel run by muppets", on TripAdvisor noticed the hotel had taken £100 off their credit card after the review was published. When they complained, they were directed to the terms of the booking in which the hotel reserved the right to charge up to £100 for each poor review they received. Debate!

Election quotes

How come we choose from just two people to run for president and 50 for Miss America?
Anon

Democracy is being allowed to vote for the candidate you dislike least.
Robert Byrne

Politics is the gentle art of getting votes from the poor and campaign funds from the rich, by promising to protect each from the other.
Oscar Ameringer