Later this afternoon at 3 pm GMT the EU release their consumer confidence which is normally a report that does change exchange rates. Today however I personally think that it will be even bigger news to the market as it also gives consumers thoughts about spending through the debt crises that in turn will probably affect the long term recovery of the euro zone. Expectations are for a drop so this morning we have already seen the euro weaken as it becomes cheaper to buy euro’s. Later today after the report I would expect this trend to continue.
In other news we also have a number of reports coming from the US. As regular traders will know relationship between the dollar and euro is key as it is the largest traded currency pair. As this price moves and currency changes hands it can affect GBPEUR as money either pores in or out of the euro. These reports include jobless figures and home sales in the US, both of which are expected to be positive. So in turn could further extend gains for sterling to euro clients as money goes out of the euro into the dollar.
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