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Dollar gains as stocks weaken

A record fall in unemployment has seen the US with more than 3.5 million loosing their jobs since the recession started.  This data has seen a clear path for what the non-farm payroll due out on Friday will show. The forecast is expected to come in at 615,000, coming in close to its 629,000 fall in July 1956.

The Euro weakened after US stocks slumped to almost the 7000 level but the currency managed to get support as that barrier was not broken.  It also got support from the extremely weak US GDP figure for the 4th Quarter.  Unemployment rose to 8.2% and CPI came in at 1.1% y/y.

Due out today is the Eurozone PMI manufacturing expected to be lower at 33.6 from its previous 34.4.  Also due out today is the Eurozone Inflation Flash expected as 1.0%.  The main news this week is the Interest decision by the ECB, expecting to cut their rates by 50 basis points.

The Sterling lost ground against the USD due to the dollar doing well against all the majors, however sterling managed to make a comeback after GFK Consumer Confidence came in better than its expected -39 coming in at -35.  Due out today is Manufacturing PMI expected to be slightly weaker.

Also due out today is Mortgage Approvals expected to be better at 32k vs. 31k previously.  The main news this week however is the BoE interest rate announcement, with the rate expected to be cut by 50 basis points.

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