Worldwide Currencies

Markets again trade in a tight range overnight. On the German Chancellors visit to China, the Chinese Premier suggested that the country will invest in the Euro Zone bail-out fund. It is likely that more details will be disclosed at the Euro/China summit in two weeks time. The Euro did however fall back after Euro Group leader Junker cast doubt on the success of the Greek talks only to find buying interest below the €/$ 1.3100 level. The Euro feels a little `under-pinned’ for the time being. US non-farm payroll data is due today, and expectations are that the recent US job recovery will continue adding confidence to global stock markets, resulting in a continuation of the weaker USD trend.

Sterling relatively unchanged overnight, although there is reported corporate interest to sell the Pound ahead of $1.5900 and £/€ 1.2100 levels.