Dollar gains and Euro loses out

9 October, 2012

Graham Harborne

Yesterday was a quiet day in the currency markets with US Banks closed for Columbus Day and very little data out in either the UK or eurozone it was left to the continuing eurozone trouble to push the markets one way or another. Surprisingly it was the dollar that was the resounding winner despite it being a US holiday. The pound fell to a 1 month low against the greenback and the euro also came under pressure though it did make gains against the loser of the day, the pound.

George Osborne announced at the Conservative Party conference that a bulk of the savings required to kick start the economy will be made via government kickbacks and this did little to help the pound which has struggled over the last week or so. A 2 day euro finance ministers meeting kicked off yesterday and though there was little to report it does appear that Spain are going to dig their heels in, almost in denial that they do need a bailout so we could see some movements if there are any further developments from the second day of talks.

Some industrial and manufacturing data due out from the UK this morning and it will be interesting to see how much notice the market takes of the actual figures as more concerns seem to be surrounding the next stage in the ‘Save Europe’ discussions. Already this morning we have seen the euro weaken across the board as ECB president Draghi is making a speech and it would appear the early morning traders don’t like what they are hearing.

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