After extending its rally to a two month high of $1.35 overnight, the euro’s rebound versus the dollar appears to have run into some resistance as traders look to take profits on recent moves. Risk appetite was also hit by a disappointing earnings report from Goldman Sachs (company earnings, not...

The major piece of news yesterday for the UK, immediately leaped upon by the wider press in this climate of VAT rises and soaring fuel prices, was the CPI figures that showed inflation coming in higher than expected for December.

Sterling managed to climb to above 1.60 against the USD this morning based on the inflation figures in the UK which came in at 3.7%, well above the target of 2% and the largest month on month rise since records began.

A largely positive week thus far for the Euro was furthered yesterday, with a successful outcome to the Portuguese bond sale. A well received auction of government debt underpinned a more confident mood in the markets, boosting US and European equities towards two year highs, and forcing another surge in...

An easing of Eurozone sovereign debt tensions and a positive start to the US earnings season provided a more supportive environment for risky assets, although the mood in the markets remained fragile ahead of a series of key events.

The Euro has continued its poor start to the year as fears about the state of Portugal’s finances take hold taking the single currency to a 4 month low against the USD and Sterling. Concerns that Portugal will ask for aid from the EU and IMF were fuelled a board...

Well, after a week’s development of data that promised nothing less than a stunning non-farm payrolls piece de resistance, Friday afternoon’s figures certainly were outstanding, but only in the sense of an anticlimactic conclusion to a week of encouraging private sector payrolls and jobless claims figures.

Markets appeared to be in a holding pattern yesterday ahead of the first non-farm payrolls report of the year later today. The dollar maintained its upward momentum but equity and commodity prices were shaky as a bout of nerves seems to have been suffered ahead of the closely watched US...

Yesterday saw a day of broad strength for the US Dollar, as robust US economic data raised hopes over the strength of the country’s recovery. The ADP survey of US private sector employment showed an increase of 270,000 in December, well ahead of an expected increase of 100,000.

Risk on was the dominant theme on the first full trading day of the year in FX, with both Sterling and the Euro setting fresh highs in the wake of stronger than anticipated UK PMI manufacturing data, and hotter inflation readings from the Eurozone.