Thursday’s session was one of consolidation after Wednesday’s big moves. There was the welcome news that the International Swaps and Derivatives Association (ISDA) has decided that the Greek situation does not constitute a credit event (in which credit default swaps will be triggered). Clearly though, the situation is very fluid.
There is nothing on the data calendar today that is likely to trigger any serious direction, though the monthly UK construction growth figure will be watched by some this morning.
STERLING/EURO: The €1.20 level returns as the euro continues to struggle, despite a poor UK manufacturing figure.
STERLING/US DOLLAR: Sterling is still struggling to make a real challenge at the $1.60 level and US manufacturing provides rare disappointment.
EURO/US DOLLAR: Comments from former ECB boss suggest a weaker euro, though there are clearly no guarantees.
STERLING/AUSTRALIAN DOLLAR: Sterling remains in range against the aussie dollar, which may suffer from a poor Australian GDP figure next week.
STERLING/NEW ZEALAND DOLLAR: Sterling is making another attempt to breach the 1.91 level this morning, though resistance may prove too tough.
STERLING/CANADIAN DOLLAR: Sterling is trading sideways against the loonie but we may see this pair bounce today.
