After a rate cut from the ECB, comments from Mario Draghi really put the single currency under pressure. The euro has opened touching two year lows against the US dollar and four year lows against the sterling.

The Bank of England also announced policy easing by pumping an extra £50 billion into the quantitive easing initiative, sending sterling broadly lower against its US counterpart. Although an expected move, some economists are questioning the validity of the move as previous cash injections have failed to stimulate the economy.

Sterling

After the Bank of England’s QE boost, sterling is down on the US dollar but flying incredibly high against its European counterpart. With trade data and industrial production numbers to be released, investors will watch worldwide developments.

US dollar

All eyes focused on the non-farm payrolls report. The softer figure of 80,000 jobs and 8.2 per cent unemployment rate confirmed a slowdown in the labour market. The FOMC minutes are due for release from the June 20th meeting. These should enlighten investors on the Federal Reserve stance towards further policy easing should the markets continue to show strain.

Euro

The uncertainty over global growth and the debt crises has seen many investors focus on safe haven currencies such as the US dollar. Financial Ministers meeting could be make or break for some of the agreements made at the previous European summit, especially the details surrounding allowing bailout funds to inject money directly into the banks and government bonds.

Japanese yen

The BoJ meets to discuss monetary policy. Economic data released showed bank lending rose, but machinery orders, a gauge for business spending, dropped 14.8 per cent month on month. The drop was a record decline, but was also skewed by seasonal factors and is not expected to influence the outcome of a policy meeting where interest rates are expected to be left unchanged.