Forex snapshot

Despite the ECB’s best efforts yesterday, EUR/USD continues to look weak and GBP/USD doesn’t look any better.             

Mario Draghi
Source: Bloomberg

Yesterday’s European Central Bank meeting and accompanying Q&A session for president Mario Draghi confirmed that it would be including both Cypriot and Greece debt when it starts its asset-backed securities purchases. To those countries in the south of the eurozone this will come as welcome news that grudges aren’t being held. Germany is less likely to have welcomed this news as it is still piling on the pressure for both France and Italy to implement meaningful austerity measures.

Mid-morning today will see the release of the latest eurozone monthly retail sales figures and, as much as we would hope they will offer the beleaguered inflation rate some assistance, history would suggest otherwise.

Spot FX EUR/USD chart

This week has seen all the major UK political parties outline their strategies for the next general election. Yesterdays suggested increase to personal allowance and increase in the level of higher tax brackets should if implemented offer the UK consumer a little more shopping fire power. This morning will also see the release of the latest services PMI figures for the UK. All eyes will be drawn to this afternoon’s US non-farm payroll figures, however. After last month’s sizable miss, expectations are for 216,000, a figure more in keeping with the trend over the last six months.

Spot FX GBP/USD chart

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