The pound looks set for an important week this week with inflation, unemployment and retail sales data due out, even as it continues to do fairly well against the single currency. Producer prices output data came in just below 4% year on year for November on Friday, indicating that inflationary...

The Dollar’s recent rally appears to have run out of steam. The US government has struck a tentative tax deal with opposition Republicans whereby Obama will partially accede to Republican wishes to extend the Bush government tax cuts – implemented in 2001, worth some $800bn and due to expire December...

The USD has made some significant gains against several currencies as Obama’s fellow Democrats questioned his plan to extend tax cuts to all Americans. The concerns caused investors to dump US treasury bonds on fears that low taxes will further worsen the hole in the US deficit and inflation could...

The Euro appears to have found temporary reprieve over the last few days against the Dollar. EU finance ministers are continuing their two day meeting today, with markets thus far disappointed at the apparent lack of any concrete plans to quell the ever expanding debt crisis.

What is Purchasing Power Parity?

Yesterday was a pretty volatile day for the Euro. Gains in the morning in the run up to the ECB announcement were quashed as Jean-Claude Trichet failed to announce an extension of the governments bond purchase.

The Euro has managed to claw back some of its recent losses against the USD in the run up to the ECB announcement this afternoon. It’s not that anyone expects a rate rise, far from it, but there are rumours that the ECB may announce measures to help resolve the...

The Euro’s orderly decline appears to have found a little support throughout yesterday and overnight, fluctuating either side of the 1.30 mark against the Dollar at intervals throughout the last 24 hours, though having plummeted so far this may be expected and could prove to be a temporary respite.

Well it seems no amount of money, bailout, assistance, aid or otherwise can calm ‘irrational’ markets (as was the cry of Eurozone leaders) once sentiment really begins to gather momentum. The whirlwind of the European debt crisis has moved beyond the battered trio of Ireland, Portugal and Spain, as spreads...