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

• Lib Dem Leader seen as the winner last night
• Chances of a hung parliament increased
• Euro looking weak as spreads continue to widen
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•  

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

There’s a fairly dark phrase in financial markets about dead cats and their propensity to rebound. The saying of course goes that ‘even a dead cat will bounce’ and the sorriest of all moggies at the moment is the euro.

Not even a week after the deal to provide Greece with over EUR30bn should they ask for it was struck and the figures are showing that the markets are still not happy to back Greek assets. The spread between Greek and German debt rose to a record 460bps yesterday with other Mediterranean countries seeing their yields increase as fear turned contagious.

As a result EURUSD fell from the mid 1.36s into the low 1.35s and GBPEUR moved back into the 1.14s. We expect this to continue in the short term.

The first Prime Ministerial debate took place amongst some suitable fanfare last night. The subject matter was domestic affairs (not cooking and cleaning as it turns out) and, with a scheduled debate solely to do with the economy to come, there was little impact on the pound. However should Nick Clegg perform as well as he did last night next week the following opinion polls could dip further back into hung parliament territory.

The dollar stayed fairly weak yesterday as economic data from the US remained strong and equity markets moved higher on the back of the Chinese GDP figures.

Data today consists of EU CPI at 10.00 alongside the European Trade Balance while we have US housing starts at 13.30.

Have a great weekend. 

·                                                                                                                     Lib Dem Leader seen as the winner last night

·                                                                                                                     Chances of a hung parliament increased

·                                                                                                                     Euro looking weak as spreads continue to widen

·                                                                                                                      

·                                                                                                                      

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

There’s a fairly dark phrase in financial markets about dead cats and their propensity to rebound. The saying of course goes that ‘even a dead cat will bounce’ and the sorriest of all moggies at the moment is the euro.

Not even a week after the deal to provide Greece with over EUR30bn should they ask for it was struck and the figures are showing that the markets are still not happy to back Greek assets. The spread between Greek and German debt rose to a record 460bps yesterday with other Mediterranean countries seeing their yields increase as fear turned contagious.

As a result EURUSD fell from the mid 1.36s into the low 1.35s and GBPEUR moved back into the 1.14s. We expect this to continue in the short term.

The first Prime Ministerial debate took place amongst some suitable fanfare last night. The subject matter was domestic affairs (not cooking and cleaning as it turns out) and, with a scheduled debate solely to do with the economy to come, there was little impact on the pound. However should Nick Clegg perform as well as he did last night next week the following opinion polls could dip further back into hung parliament territory.

The dollar stayed fairly weak yesterday as economic data from the US remained strong and equity markets moved higher on the back of the Chinese GDP figures.

Data today consists of EU CPI at 10.00 alongside the European Trade Balance while we have US housing starts at 13.30.

Have a great weekend.