Is the recent strength of the euro weakening? After seeing a strong start to the day yesterday the EUR/USD lost its gains and ended the day 10 pips lower than its opening quote.EUR/JPY also saw a losing day as it also fell a couple of pips below its 101.5 support price.
The German consumer climate report was better than anticipated and this helped in giving the euro a strong start to the day. It released a figure of 5.9 for January higher than the consensus figure of 5.6.
Despite the strong start to the day the euro quickly relinquished its strength after reports that the ECB could not come to an agreement with the Greek government on the issue of sovereign bonds. The ECB is currently holding over 400 million Euros of Greek government bonds and unless we can see an agreement reached on what to do with the bonds expect the strength of the euro to continue falling.
For today we expect data relating to money supply and privet loans to be released any time soon but what you should actually put your focus on for the day is Mario Draghi’s speech at 1.15 pm GMT since we expect him to make a statement on the next steps we expect the ECB to take regarding European debt.
In the UK yesterday we saw little information released but sadly the information to come out of the UK was a bad one.CBI realized sales report to a huge fall this month as its index fell from 9 right down to -22.Various analysts forecasted a reading of -2 which is way higher than the figure we saw. This certainly did the GBP no good.
For today the economic calendar of the UK is blank but go across the Atlantic ocean if you have plan of trading the GBP/USD or stay with the euro zone debt problems. The US GDP report is expected to have a huge influence on the strength of all European currencies especially the EUR and GBP.
The German consumer climate report was better than anticipated and this helped in giving the euro a strong start to the day. It released a figure of 5.9 for January higher than the consensus figure of 5.6.
Despite the strong start to the day the euro quickly relinquished its strength after reports that the ECB could not come to an agreement with the Greek government on the issue of sovereign bonds. The ECB is currently holding over 400 million Euros of Greek government bonds and unless we can see an agreement reached on what to do with the bonds expect the strength of the euro to continue falling.
For today we expect data relating to money supply and privet loans to be released any time soon but what you should actually put your focus on for the day is Mario Draghi’s speech at 1.15 pm GMT since we expect him to make a statement on the next steps we expect the ECB to take regarding European debt.
In the UK yesterday we saw little information released but sadly the information to come out of the UK was a bad one.CBI realized sales report to a huge fall this month as its index fell from 9 right down to -22.Various analysts forecasted a reading of -2 which is way higher than the figure we saw. This certainly did the GBP no good.
For today the economic calendar of the UK is blank but go across the Atlantic ocean if you have plan of trading the GBP/USD or stay with the euro zone debt problems. The US GDP report is expected to have a huge influence on the strength of all European currencies especially the EUR and GBP.
