The euro recovered this morning after trading at a monthly low of $1.3140 against the dollar, yesterday. Pressures on the euro persist as traders await the final interest rate decision to be announced by the European Central Bank this coming Thursday.
There is uncertainty over the level of rate cuts the bank will announce. Without a significant cut from the European Central Bank the Euro may weaken further, as investors appear to be concerned that the Bank is not doing enough to face the threat of global economic recession.
Traders’ attention will focus today on the retail sales index, providing a clear indication of the results of retail sales during the Christmas Period. Market expectations are extremely low regarding this figure, preventing the strengthening of the US Dollar against other major currencies.
Oil prices increased by 3% during the overnight trading session. Oil is trading around $39.30 US Dollars per barrel. The rise in prices came off of the back of renewed calls in OPEC for production cuts, and the increasing demands for oil in the US due to the cold weather period
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