Moving Of British Pound and Euro

British Pound and Euro Little Moved Despite Heavy Event Risk


The European session dominated when it came to scheduled event risk Thursday; but the data would ultimately offer little direction. For the euro, the release of strong sentiment indicators was quickly offset by a sharp drop in retail sales. According to the European Commission’s statistics, consumer confidence in the Euro Zone rose to an 18-month high and the outlook for the economy was as bright as it has been in the same period. However, how much does that mean when actual consumer spending for the region plunged 1.2 percent through November – matching the worst slump on record. The conditions for the pound were the same; but the potential was greater. Some believe the economy is at a turning point; so now would be the time for the central bank to start raining in stimulus to support its financial markets. Yet, in the end, the MPC would change neither the bond purchasing program nor their outlook for stimulus; leading the pound to a drift through Thursday’s close.

US Dollar Edges

US Dollar Edges Closer to a Breakout with NFPs on the Horizon


The US dollar hasn’t moved very far in the past three weeks. In fact, since the greenback’s aggressive December rally stalled, the benchmark EURUSD has maintained a range (albeit one with a mild bearish bias) of a little more than 100 pips. Through the end of today’s US session, the dollar would complete another bullish swing within its limited range. However, this technical cue may be just one step away from a critical breakout for the meandering currency. There are a few things that can spark life back into the dollar and risk appetite in general; US non-farm payrolls (NFPs). Further leveraging the clout of this already notable market mover, we can see blatant evidence of pent up pressure across the financial markets. And, no other benchmark better defines the need for momentum and trend better the Dow Jones Industrial Average. The model traditional-investor asset class, the equity index is a straightforward barometer for risk appetite or aversion. That being said, the benchmark has maintained a 300-point spread for going on two months now. When the stock market finally breaks, expect the US dollar to the same.