EU growth is morning's highlight

Today's Highlights

• Markets spooked by nervous central banks

• EU growth is morning's highlight

• US retail sales should show growth

FX Market Overview

It is go to work in your pyjamas day. How the heck did I miss that one? Mind you, it is chilly out there and maybe not everyone would get why I was commuting in my PJs ... oh and I don't wear pyjamas. Good thing I missed it really.

Aside from that silliness, the markets are going to work with their gloomy faces on. When the head of the US central bank is ruing the rate rise she oversaw in December and the Bank of England is hinting at rate cuts rather than rate hikes, you know the world is in a tight spot. The repercussions of the Chinese slowdown are being slightly offset by the very affordable price of energy and commodity products but none of that is promoting growth and that is the problem.

Stock markets have continued to fall overnight. The Euro continued to strengthen but I guess the European Central Bank has already pulled out all the stops to try to stimulate the economy and perhaps doesn't have a lot more room to manoeuvre.

Unlike other days this week, we do actually have some data to focus on today. Hurrah! We have already had German economic growth data this morning and that was a bit ho-hum because it was bang on the market expectations at 0.3% growth in Q4 of last year. That will be followed at 10.00am UK time by the Eurozone GDP data which, oddly enough should also show a 0.3% growth rate. Unless the actual data is far removed from the forecasts, that won't make the earth move for the Euro; external influences are far more compelling.

This afternoon brings US Retail Sales data which ought to be marginally positive but the activities – or lack thereof – of the Federal Reserve are more pressing factors in the US Dollar's volatility. As we ease into the weekend, traders will be looking to the central banks for further guidance and to the equities traders for cues. As such, we are set for further volatility and uncertainty. This is a very good time to use limit orders to try to achieve advantageous exchange rates. Have a chat with your Halo Financial consultant if you would like to explore that opportunity.

In the meantime, have a great weekend. It is St Valentine's Day on Sunday as indicated by the huge rise in romantic trips to Rome. Oh and there is a certain rugby match on there this weekend as well. How very convenient. Oh and keeping with all things romantic, Andy May is a very happy man. He lost his wedding ring in 2013 when it slipped off his finger while he was fishing at Cudmore Fisheries in Newcastle-under-Lyme. He obviously though it would be the last he saw of the ring but the lake was drained for maintenance and the owners allowed Andy to take a metal detector down to search. Low and behold, he found his missing ring and after a wash it is as good as new. All together... Ahhhh.