Draghi’s remarks provide no comfort as the Euro slides

Following a struggle, EU Finance Ministers eventually agreed to provide €150 billion to the IMF who will use the funds to help bail out European governments. This however failed to boost market confidence as collective European debts now total €1.3 Trillion.

Mario Draghi, the European Central Bank president (ECB), reinstated that he is reluctant to let the ECB buy more government bonds.

The euro is under pressure as Spain prepares for a short term bond auction today and the risk of a downgrade of the Eurozone is still a high possibility.

George Osborne stood up to Eurozone leaders avoiding a €31billion contribution to the IMF. The Exchequer is in favour of increasing the UK’s interest to the IMF but only in return for its global role and not just too simply bail out the Eurozone.

Today’s Fundamentals

United Kingdom - Nationwide Consumer Confidence (Nov) illustrates a positive confidence in the future of the UK’s economy.

The level of consumer confidence that stimulates economic expansion has a positive reading to the previous consensus, so this will also impact positively on the GBP.

Germany - Gfk Consumer Confidence Survey (Jan) shows a flat of 0% from the previous consensus level, which illustrates a level of consumer confidence stimulating economic expansion.

Results due out in US later today include the following:

Housing Starts (MoM) (Nov)

Building Permits (MoM) (Nov)

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Institutions named in this article:

ECB: European Central Bank- The institution of the European Union (EU) which administers the monetary policy of the 17 EU Eurozone member states.

http://www.ecb.int/home/html/index.en.html

IMF: The International Monetary Fund - An organization of 187 countries, aimed at fostering global monetary cooperation, secure financial stability, to promote international economic cooperation, international trade, employment, and exchange rate stability.

http://www.imf.org/external/index.htm