ECB rate decision tonight!

The Fed’s latest beige book and the ADP employment data came out a little bit more optimistic. Fed Chairman Bernanke’s made a statement saying he would not rule of the possibility of a QE3 if conditions deteriorate though that is clearly not his expectation.

Euro rose to a high of 1.3890 last night on growing expectations on a rise in interest rates in the Eurozone before the United States. There’s talk of option related selling ahead of 1.3900. Eurozone PPI came out stronger and will add to the ECB’s inflation concerns. S&P has also said its ratings on Greece and Portugal remain on credit-watch negative.

Sterling rose to a 13-month high versus a weaker dollar on again interest rate rise expectations. The cable was helped by above forecast data from the UK construction sector as well.

This week has been a data-intensive week for the Aussie. It was a mixed bag this morning with the trade balance coming out better than expected but the building approvals came out worse.

Lots of data tonight! Keep a close watch on your trades!

Data Today

German Retail Sales – 7am GMT

German PMI services – 8.48am GMT

Eurozone Services PMI – 9am GMT

Eurozone GDP  - 10am GMT

ECB rate decision – 1.00pm GMT

ECB Trichet's speech – 1.30pm GMT

UK Services PMI -9.30am GMT

US Initial Jobless Claims - 1.30pm GMT

US Non-manufacturing ISM – 3pm GMT