USD

The US dollar continued its losing streak this week
following disappointing job data and retail sales from the US.

The number of people filing for jobless claims in the US
last week rose by 8,000 instead of falling by 1,000. Also retail sales in the
US unexpectedly fell by 0.4% in January; with the bad figures being attributed
to the recent bad weather in the US.

USD

The US dollar continued its losing streak this week
following disappointing job data and retail sales from the US.

The number of people filing for jobless claims in the US
last week rose by 8,000 instead of falling by 1,000. Also retail sales in the
US unexpectedly fell by 0.4% in January; with the bad figures being attributed
to the recent bad weather in the US.

Also given Janet Yellen’s, Head of the Federal Reserve, comments
on Monday with regards to only tapering quantitative easing with regards to
economic data, looks like market are probably pricing that there could be bad
data for Februarys figures given the recent cold snap. As a result this could
delay tapering quantitative easing, which is why we are seeing the US dollar
weaken off.

GBPUSD is presently at the highest level since May 2011.

EUR

The euro has had support today following data from France,
Germany and the Eurozone as a whole showing that all three economies have grown
by 0.3%, 0.4% and 0.3% respectively; all above market expectations. EURUSD as a
result is at a three week high, whilst gains against the pound have been muted.

Key Announcements:

14.15pm – USD – Industrial Production (Jan): Expected to
remain at 0.3%.

14.55pm – USD – Reuters/Michigan Consumer Sentiment Index
(Jan): Expected to fall to 80.6.