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Euro takes the spotlight

He changed his stance on inflation and the hawkish monetary policy due to the current turmoil's in the market.  The main weakness in the currency was made when Trichet, mentioned that they were considering cutting interest rates, which are currently at 4.25%. The Euro dropped to a 1 year low against the USD and 2 year low against the Yen.  Also news that the Euro zone is not synchronising with each other, with some individual countries already making their own decision, didn't help the Euro and investors questioned this stance. Due out today is Germany and Euro PMI services along with Euro Retail Sales.

The US dollar received its bailout which helped the stock market. Although this was good news the US continued to display weak data throughout the day.  Due out today is the Non Farm Payrolls which is expected to come it at -100 far lower than its previous -84, which may see the US dollar make some movement in the markets.

Sterling weakened against the USD due to the bailout news.  However the weak data out yesterday did not help.  Construction was down at -1.7% with PMI falling to 38.8, well below the 50 level. Due out today is the PMI services expected to be slightly lower.

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