Tuesday, 19 Jan 2010

Pound Hits 4 Months High against EUR

The EUR fell to a four-month low against a firmer pound on Tuesday as the EUR remained weak on concerns about Greece. Greece's ballooning budget deficit and debt of more than 120% of gross domestic product has triggered downgrades by debt rating agencies and have hurt the EUR in the past few months.

Sterling pound rose to a six-week high of $1.6450, buoyed by the prospects of an M&A boost for the currency. It was last traded at $1.6390, up 0.7% on the day and the EUR was down 0.7% at 87.40 pence.

Looking ahead today, much vital data is expected from the leading economies. Traders are advised to pay special attention to two leading indicators, the Canadian Over Night Rate and U.S Long-Term Purchases. A positive end result of each of these indicators is likely to strengthen the local currency the CAD and USD.