Euro flustered by Greek criticisms

Today's Highlights

Euro flustered by Greek criticisms

USD strong ahead of heavy data week

Sterling holding station at the top of its ranges

FX Market Overview

England looked a shadow of their previous selves when Ireland stopped them in their tracks on Sunday. We need Wales of Scotland to do us a big favour if we are to contest for the 6 Nations crown and only Ireland can now secure the Grand Slam. Based on yesterday's performance, I wouldn't bet against that.

Oh and I never thought I would say this but I have to confess, I found last night's episode of Top Gear utterly boring. It appears the ideas train has stopped calling at the Top Gear track.

In the markets, there have been developments over the weekend. The criticism of Greece's plans regarding their debt continues to rage on. In their defence, Greek government speakers have suggested there are more intelligent ways to restructure Greek debt. The euro has remained fairly static but there is plenty for Euro traders to loot at this week. Aside from the barrage of Purchasing Managers Indices which will hit us over the next few days, this morning brings Eurozone inflation data. A marginally less negative figure than last month is expected but we are almost certain to remain in deflation territory. We will also get the ECB interest rate and QE decisions on Thursday. No change is forecast in the headlines but the press conference is always good for a bit of volatility. And the week ends with Eurozone economic growth data. No revision is envisaged from the previous 0.3% growth estimate for Q4 but there's many a slip twixt cup and lip, as elderly relatives sometimes say.

For the Pound things are still looking quite rosy; Sterling has hit the top of a technical trading pattern against the Euro and is the only currency to have made gains against the US Dollar of late. However, as each day passes, the UK election looms a little larger and that will knock sterling to some extent. This morning brings consumer and mortgage data and Thursday brings a Bank of England meeting but no change is expected from that and, as I write, no press conference is scheduled.

The US Dollar remains the winner in most currency pairs. This is a monster week for US data. A slew of PMI indices will accompany personal income and expenditure data. We will also get the all-important employment report on Friday. Analysts will be checking to see if the pace of job growth is slowing. That would be a signpost for delayed interest rate hikes and may cause a flurry of US Dollar weakness.

Central Bankers will be active in Australia and Canada this week. There is a possibility of an interest rate cut in Australia and that would help the AUD to weaken but I doubt the Bank of Canada will follow suit even though the markets have priced in the chance of a small cut.

All in all it will be a volatile week. Even if no major changes happen in the data, the potential for upsets will be enough to get traders...well... trading.

And Tesco's appear to have re-tagged bananas and nuts as alcohol related. That's what Tony Morris found out when a bleeper went off on the automated checkout at his local Tesco in Carlton, Nottinghamshire. Apparently, the system suggested the 50 year old should be ID checked and asked whether he was planning to ferment the fruit to make alcohol. So be careful when you are buying your barley, oats, grapes or sugar. Oh and STEP AWAY FROM THE HOPS.