Currency Matters

David Cameron secured a historic EU budget deal on Friday when European leaders agreed to a cut in EU spending for the first time since the EU was established. After 25 hours of negotiations, and despite strong opposition from French President Francois Hollande, an agreement was reached.
Despite the result on Friday having been potentially bullish for the Pound, this morning Sterling is slightly down against both the Euro and the Dollar. GBP/EUR is currently trading at 1.1730, down from a high this morning of 1.1820. Similarly GBP/USD is down 1.5715, having been as high as 1.5809 earlier. However we may see the Pound recover some of its recent losses later this week should key UK data due out on Tuesday and Wednesday show improvement, something the UK hasn’t had for several weeks now.

Please find a summary of this week’s economic calendar below:

11.02.13
Eurogroup Meeting
18:00 FOMC Yellen Speech

12.02.13
UK BOE Inflation Letter
00:01 RICS Housing Price Balance
09:30 UK Core Consumer Price Index
09:30 UK Producer Price Index
09:30 UK PPI Core Output
13:45 BoC Governor Mark Carney Speech

13.02.13
10:00 EU Industrial Production
10:30 BoE Quarterly Inflation Report
10:30 BoE’s Governor King Speech
13:30 US Retail Sales

14.02.13
03:00 BoJ Interest Rate Decision
07:00 German GDP
09:00 EU GDP
13:30 US Initial Jobless Claims

15.02.13
09:30 UK Retail Sales
14:15 US Industrial Production
14:55 US Reuters Consumer Sentiment

Mark Webster