httpvh://www.youtube.com/watch?v=JHCiS5JIL6Q

·         ‘Arrangement’ made, although no detail yet.

·         Euro gets crushed, sterling gains 1.3%, dollar gains 1.6%

·         EU GDP, Industrial Production expected to be poor

All this and more is available on our blog. Click here  http://www.worldfirst.com/blog

The euro collapsed yesterday as politicians met in Brussels. Although an ‘arrangement’ has been made (one voted for unanimously as well apparently) the lack of detail left markets unwilling to hold the single currency.

It was sold hard against everything with the pound gaining 1.3% and the dollar 1.6%.

This is a classic example of traders buying the rumour and selling the fact. The rumour and speculation of assistance for the Greeks that swelled belief behind the single currency has been swiftly flattened by the fact that this plan drags the eurozone down as a whole. We have been bearish euro for 12 months and this only reinforces our view that the eurozone will be be beset by problems for years to come.

The general consensus now is that we will not hear anything until Monday’s EcoFin meeting. A weaker euro is likely.

When it rains it definitely pours in currency-land. EU GDP is due today at 9am GMT and is forecast to have dipped since Q3, this will only give traders more incentive to sell the beleaguered single currency. Eurozone Industrial Production is also forecast to be poor (10am) while US consumer confidence should see a slight uptick.