You've landed on our UK website.
Click here to visit our USA website.

If you are having difficulty locating the information you require, we're here to help. Just get in touch and we will do our best to assist you.

Where do we start looking for good news....


Where do we start looking for good news……


… certainly not in the Financial Press. Just as a brief résumé …

EuroSat reported yesterday that Industrial Production in the Eurozone fell by a massive 7.7% in the past year to November following a downward revision to 5.7% for October. the Euro stuttered and fell as traders were taken aback by suddenness and size of the European economic slowdown. German data added to the gloom with a back of the envelope calculation on the back of yesterday's GDP release indicating that 4th Qtr GDP (workday adjusted) dropped by 1.4% which equates to a seasonally adjusted annualized rate of decline of an eye-watering 5.6%. These sorts of numbers now put intense pressure on the ECB later today, to cut their Euro interest rate by at least 50 basis points with the economic environment screaming that nearer a full 1% is required. Adding to the pressure was the French CPI figure which rose just 1% in the year to December, down from its 3.6% peak in July, and the likely revised figure for the Eurozone December CPI which is expected to show the inflation rate excluding energy for the region to be just 1.4% higher than 1-year ago (no change from the November figure). So not an inkling of any inflationary pressures here.

Nothing significant data-wise from the UK yesterday or today or tomorrow but there was plenty of bad news --- AGAIN. Further forced redundancies in the Financial Sector, more bad news from within Corporate UK plc and a slumping stock market held Sterling back on the exchanges and gave UK bonds a boost with prices rising and yields falling.

In the US there was a huge headline fall in December retail sales (2.7%) and even excluding non-core items, vehicles, energy and food, still registered a 1.6% drop. This was the fifth straight monthly fall and can be attributed still to the plunge seen in consumer confidence falling the drop in stock prices in early October. This magnitude of rate of fall can not carry on and one has to assume a bottoming out probably in conjunction with a pick up in industrial production. Aside from the Yen, the US Dollar remains the best of a bad bunch in terms of holding currency.
 

The contents of this report are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. Currencies Direct cannot be held responsible for any loss or damages arising from any action taken following consideration of this information.

 

The contents of this report are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. Currencies Direct cannot be held responsible for any loss or damages arising from any action taken following consideration of this information.

Check our exchange rate

Thanks, we'll be in touch.

Check your inbox - one of our currency experts will be in touch to complete your quote.

If you want see our online exchange rates straight away, simply register online & log in.