GBP/USD 1.60+ EUR/USD 1.40+
The greenback continued to fall yesterday on growing expectations that the US will extend the quantitative easing currently in place when the Fed meets again in early November. The new round of weakness means that the Euro has managed to break through the resistance level at 1.40 managing to get above 1.41 in early trade today. Sterling does not seem to be faring as well against the Dollar struggling to get much above the 1.60 mark but definitely off the lows earlier in the week.
Yesterday we saw some worrying employment figures as the number of people claiming job seekers allowance rose for the second month running. Concerns about the recovery of the UK economy have been hampering the pound for the last few weeks.
Yesterday saw some better than expected Industrial Production figures for the Eurozone which has helped the Euro to the recent highs against the dollar.
A quieter day today on data front with just US Jobless Claims and Producer Price out which are not expected to hold any surprises meaning it may be a bit of a quieter day on the currency markets in the run up to the weekend. Tomorrow we have a bit more data out but nothing for the struggling Pound so sterling may need to rely on weakness in other currencies to make any gains.