Great rates with GBP/EUR 1.20+ and GBP/USD 1.62+
After this weeks report of potential negative interests rates the Euro finds itself under some selling pressure – particularly ahead of today’s Economic calendar:
Today’s data focus centres on the eurozone, with the German IFO due and ECB President Draghi scheduled to speak. The market expects the November IFO business climate index to hold steady at October levels. This follows yesterday’s data showing a 10-month high in Germany’s composite PMI.
Meanwhile, Mr Draghi’s comments will be of interest in the context of the ECB’s surprise rate cut earlier this month and press reports this week that the central bank is considering a negative deposit rate.
Elsewhere the US dollar has weakened after fairly positive US data fuelled investment in riskier assets (and hence a sell off of the global funding currency, USD).