Investors continue to sell off the euro amid fears of division within the eurozone

Investors continue to sell off the euro and over £300 million of UK gilts were purchased yesterday as there was an ongoing uncertainty and fear of division within the eurozone.

Investors have gone as far as to claim that UK bonds have gained a relative safe Haven status due to the crisis in the nearby region.

Italians were again at the butt of the crisis and once more were forced to pay record interest rates of 6.47% on future loans in a bond auction yesterday.

Further data released points towards Italy as being a high risk and markets are no longer convinced of the sustainability of “forza Italia”.

Dampened economic growth of just 0.1% in the Eurozone is expected in 2012.

The EUR fell to record lows, under 1.30, yesterday based on this market sentiment and on breaking news just released from ECB that markets will stifle further in the new year, we predict it to hover here today.

More market declines are predicted today with further EUR sell off and fear mongering by investors. Contagion will spread further and is expected to spill into markets globally throughout today’s trading.

Economic Data

9.00 PMI For Germany in Services and Manufacturing (expected to drop .02/03%)

9.00 ECB monthly report

9.30 UK – Retails sales , (MoM & YoY) For a live rate login to RationalFX now

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