by Damian -
Pound to Euros reaches 1.2900!
US Dollar Exchange Rates
A relatively quiet day in the US today, having said that the US Dollar needs to get no stronger so hopefully the Pound will strengthen today gainst the Dollar following some potential positive UK data, currently sitting around 1.5300 US Dollar to the Pound.
Pound Exchange Rates
In the UK today we have Halifax House Prices, expecting house prices to continue to increase.
The big market mover today is going to be the PMI (Purchasing Manager Index) Construction figures. Although it is expected to come in less than the previous month, we still see it as a poitive as it sits above 50.0 Possibly seeing the Pound strengthen against the Euro once again. Will we see 1.2900 again?
After the interview with Mario Draghi, European Central Bank President, informing us that the Euro Area faces a rising risk of deflation, the preliminary German inflation figures for December today become of some significance, although the main Euro Area inflation data is released on Wednesday.
Both the German Retail Sales for November, Month on Month and Year on Year, are providied this morning, both coming in lower than previous months, backing up Draghi with his statement of deflation.
This afternoon for the Euro we have the German CPI (Consumer Price Index), expected to come in higher Month on Month but lower Year on Year. Inflation usually leads to a decrease in purchasing of the Euro in Germany. As Germany is the largest Euro-zone economy inflation in Germany has a large impact on the rest of the inflation numbers for the rest of the Euro.
Another story gaining more air play is will Greece leave the Euro? It is the story to watch as it could be the beginning of the end for the Euro. Could be a good reason to give buying euros a miss fro the time being and head to the safety of US Dollars