Euro boosts up Thanks to Bini-Smaghi

Euro benefitted from ECB board member Bini-Smaghi comments that “as the economy gradually recovers and global inflationary pressures arise, the degree of accommodation of monetary policy has to be monitored and, if needed, corrected”. Also keep a watch on Ireland as it holds parliamentary elections on Friday which could be a key stress point for Euro. Opposition parties Fine Gael and Labour have campaigned on negotiating terms on interest rates and senior bank debt.

Sterling continues to be supported by rate hike expectations. We have the BOE minutes out this Wednesday.

Aussie dipped a little after China raised its reserve ratio requirement.

U.S is on holiday today, so we may see a thin market.

Data today

German PMI Manufacturing – 8.30am GMT

German PMI services – 8.30am GMT

German IFO - 9am GMT

Eurozone PMI Manufacturing – 9am GMT

Eurozone PMI services – 9am GMT