A rather dull day all round
The Euro dropped a little against both Sterling and the Dollar yesterday on the back of the credit agency Fitch’s downgraded of Europe’s temporary rescue package but it seems to have had far less of an effect on rates than would have been expected. All in all, yesterday was somewhat uneventful in the markets which we could attribute to sunny weather; who knows? The Greeks go on strike today, with transport systems, schools, hospitals and Government offices closing in protest of further public sector job cuts.
More weak figures from the US with retail sales lower than expected, the only anomaly here, being car sales that show their biggest gain since last November. Stripping out car and fuel sales, core retail sales fell by 0.1% suggesting that the underlying picture of consumer spending remains fragile.
The US Dollar continues to hold its ground ahead of tomorrow’s Bernanke monetary policy testimony. GBP/USD has found support above the $1.50, currently trading around 1.5050 while EUR/USD is trading above $1.3060 this morning. GBP/EUR now around 1.1520.