Currency news today 6 Jun 2012

After a long weekend in celebration of the Queens Jubilee today we are back into the swing of things with key eurozone and UK announcements due for release over the next 2 days. The end of last week saw the pound weaken off against both the dollar and the euro, mainly due to end of month profit taking and a reluctance for traders to keep positions open with a 2 day bank holiday in the UK. The pound has spent the last 2 days trading within a fairly tight range against both the euro and dollar.

A number of poor eurozone data releases led the pound to pick up after it had hit a 4 week low against the single currency and we could see further gains today with the ECB rate announcement due. There is a possibility that the ECB may cut rates by 0.25% but is likely to be the tone of ECB president Draghi’s accompanying press conference that will give us an idea of the direction the pair is heading. With fresh concerns over the Spanish banking system coupled with continued speculation over whether or not Greece will remain in the Euro we could see further pressure on the euro. There is also UK PMI Construction data due out along with eurozone GDP figures so it could well be a busy European session.