Euro finds some support
The Euro has managed to find some support on hopes that Ireland is close to doing a deal with Europe that will support its banking system and the state as a whole. The head of Irelands Central Bank, Patrick Honohan, said that Ireland could receive “tens of billions” of euros although there are no details for the package as yet. Yesterday saw an auction for Spanish bonds that went surprisingly well with strong bids helping to boost risk appetite and improving market sentiment.
Sterling was supported a little yesterday with decent retail sales figures and better than expected CBI Industrial Trends Survey although the Public Sector Net Borrowing for October did come in almost £1bn higher than expected.
Today we have very little data out with exception of the German Producer Price Index showing a marginal increase. This morning Ben Bernanke for the US Fed will be speaking at a banking conference in Frankfurt to try and defuse criticism of the $600bn bond purchase plan. We also have the ECB’s Jean Claude Trichet speaking this afternoon which could be one to watch as this may give an idea of what the ECB are planning regarding the whole Ireland situation.
These speeches will provide the only real direction today so we may see a slightly quieter day of trading going into the weekend.