As predicted in another article written yesterday I thought we would see Sterling improve against the Euro (click here to find out more). The main reasoning is that we’ll see the release of the ECB interest rate decision during tomorrow afternoon’s trading session. I have heard rumours albeit not wholly reliable that there is a small chance of a rate cut tomorrow as an attempt to combat low inflation currently at 0.6% in the Eurozone.
Typically if inflation is low this leads to a need to cut interest rates and this will often lead to currency weakness. If this happens tomorrow, although unlikely, we could see Sterling rocket through 1.21+
Eurozone Retail Sales are released at 10am in the morning and expectation is for 0.8% so anything lower could lead to the Euro weakening and I think with the Eurozone struggling in the early part of 2014 we could see the data being rather negative.
Over in the US Jobless Claims come out tomorrow afternoon and if the figures are strong we are likely to see Dollar strength which will lead to Euro weakness providing some very good opportunities if you need to buy Euros.
If you want to take advantage of these current levels then get in touch with me for a free quote Tom Holian firstname.lastname@example.org