EUR

The euro experienced mixed data yesterday and as a result
demand for the currency wasn’t as high as we saw last week.

Data from Germany revealed that imports rose by 2.9% in October, while exports increased
by just 0.2%. That left Germany with a trade surplus of €16.8bn for the
month, less than the €18.0bn economists had expected.

Industrial Production in
Germany fell by 1.2% in October and the Sentix Investor Confidence dropped from
9.3 to 8 for December.

EUR

The euro experienced mixed data yesterday and as a result
demand for the currency wasn’t as high as we saw last week.

Data from Germany revealed that imports rose by 2.9% in October, while exports increased
by just 0.2%. That left Germany with a trade surplus of €16.8bn for the
month, less than the €18.0bn economists had expected.

Industrial Production in
Germany fell by 1.2% in October and the Sentix Investor Confidence dropped from
9.3 to 8 for December.

USD

The US dollar continued
its broad weakness overnight despite comments made by James Bullard of the
Federal Reserve. Bullard commented that given the current data and improving
job market in the US, tapering of the Fed’s monthly bond buying programme is
looking odds on. Any cut however could well be modest due to low inflation.

One of the criteria laid
out by the Fed was for inflation to be just below 2%, currently the rate of inflation
stands at 1%.

GBP

In speech made by Mark
Carney yesterday evening, the Bank of England Governor reiterated his previous
stance that a hike in interest rates would only be an option once the UK
economy shows a sustained recovery.

Data from the UK this
morning showed that industrial production exceeded expectations in October rising
by 0.4% whilst manufacturing production fell in line with expectations rising
by 0.4% also. The pound continued to be relatively supported despite the mixed
data and the comments by Carney.

Today

ECB President Mario Draghi
is set to make a speech today in Rome, where expectations are for him to downplay
the possibility of any further monetary easing by the Central Bank.

Also the National
Institute of Economics and Social Research will also be releasing their UK
economic growth estimate for the three months leading up to November. Given
recent data, we could well see the estimate revised higher from 0.7% to 0.9%.

Key Announcements:

12.00pm – EUR – ECB President
Draghi’s Speech.

15.00pm – GBP – NIESR GDP
Estimate: Previously at 0.7%