EUR

Data from the Eurozone was fairly positive on Friday and as
a result we saw the euro strengthen by 1% across the board.

Firstly, retail sales in Germany increased by 2.5% in
January surpassing an expectation of a rise of only 1%. Despite worries of inflation
dropping in the Eurozone, we saw a surprise pick up in the rate with inflation
now at 0.8%. The Eurozone rate of unemployment also remained at 12%.

USD

EUR

Data from the Eurozone was fairly positive on Friday and as
a result we saw the euro strengthen by 1% across the board.

Firstly, retail sales in Germany increased by 2.5% in
January surpassing an expectation of a rise of only 1%. Despite worries of inflation
dropping in the Eurozone, we saw a surprise pick up in the rate with inflation
now at 0.8%. The Eurozone rate of unemployment also remained at 12%.

USD

Data from the US on Friday was fairly mixed with economic growth
in the fourth quarter only coming in at 2.4% instead of 2.5%. The Reuters
Michigan consumer sentiment index came in higher than expected and pending home
sales rose only by 0.1%.

Following all this data, the US dollar weakened ever so
slightly across the board.

Today

This morning we have seen demand for safe haven currencies
such as the yen and Swiss franc intensify over the political tensions between
Russian and Ukraine. Traditionally you would also expect the US dollar to
strengthen as well given its safe haven status. However, it would appear
uncertainty surrounding the Federal Reserve tapering their quantitative easing
program are causing investors to hold off seeking the US dollar as a safe
haven.

Manufacturing data from the Eurozone and the UK have come in
better than expected this morning showing an expansion in both economies. The
pound as a result has made minor gains in early trade.

Key Announcements:

13.58pm – USD – Markit Manufacturing PMI (Feb): Expected to
expand to 56.6.

14.00pm – EUR – ECB President Draghi Speech.

15.00pm – USD – Construction Spending (Jan): Expected to
fall by 0.5%.

15.00pm – USD – ISM Manufacturing PMI (Feb): Expected to
increase to 52.