Daily currency report
The Greek debt crisis remained the dominant driving force into currency movements with speculation surrounding the imminence of a bailout package pushing the euro back and forth and in and out of positions in the safe haven currencies of the Japanese...
The Greek debt crisis remained the dominant driving force into currency movements with speculation surrounding the imminence of a bailout package pushing the euro back and forth and in and out of positions in the safe haven currencies of the Japanese yen and US dollar.
Sterling
Sterling movement was dominated by the Bank of England's inflation report and somewhat negative testaments by MPC members into their perceived outlook for the UK economy, neither of which looked to support sterling.
US Dollar
With markets fixated by movements in the Greek debt crisis, domestic developments in the US were somewhat overshadowed. Despite this investors were buoyed into investing once more in the greenback surrounding renewed hopes that a US economic recovery is in full flow. Hopes were fuelled following Federal Reserve Chief, Ben Bernanke's hawkish proposal to begin the withdrawal of extra liquidity. As well as this, the Fed Chairman announced that the discount rate would soon be increased as well as the rate the Fed pays for excess cash held in US banks.
Euro
Much was discussed into the level of financial aid required to help lift the flailing Greek economy, or indeed whether should be forthcoming. It was revealed that there will be no guaranteed financial assistance or even discussions into support until Athens has shown to the EU that drastic spending cuts were being planned, and a way out of recession being engineered.
Japanese Yen
Japan's corporate goods price data came in above expectations and machinery orders nearly doubled from last months figures to 20.1 on the month. Japanese GDP figures for Q4 saw a rise to 1.1 per cent which was better than market expectations of 0.9 per cent growth.