Ecofin proposes a €940 billion fund to Eurozone

The euro continued to find support against the USD. This comes as leaders in the Eurozone prepare to raise the bailout fund to €940 Billion in an effort to curb the spiraling downtrend in the euro. This is likely to happen by combining the EFSF and ESM. Germany’s GDP declined by 0.3% in the last quarter of 2011 and France barely grew with a 0.2% rise.

GBP experienced losses against most of its major counterparts as the Office for National Statistics showed that the U.K. economy shrank by 0.3% in the fourth quarter. UK Nationwide Housing Prices n.s.a (YoY) (Feb) also dropped to -0.9% from a previous result of 0.9%. However a mix review for the GBP continues as the current account deficit narrowed to -£8.451Bn.

There is positive news in US as orders for durable goods rose for the fourth month in the last five. Albeit a positive figure, the rise fell short of market expectations and caused a selloff in stock markets around the world. The USD strengthened slightly due to its safe haven status.   

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