The pound is higher against the dollar this morning, but remained muted against the euro before the EU leaders meet in Brussels today to resolve region’s debt crisis. Sterling was supported yesterday after current account deficit in the second quarter narrowed to 2 billion pounds, the smallest since 2008, after reaching 4.1 billion in the first three months of this year. Looking ahead to today, the CBI releases its industrial trends survey at 11:00, with the expectations for the headline total orders number to increase to –7 from –9 in September. Separately, BoE policymaker Adam Posen is speaking in New York today at 19:00. With relatively light economic calendar scheduled for today expect for the pound to remain driven by the events on the continent.
The euro was little changed against most of its major rivals before the EU leaders meet today to discuss the debt crisis. EU leaders are holding the 14th crisis summit in 2 years to discuss Greece’s bailout, the recapitalization of banks and strengthening the 440 billion euro rescue fund. German Chancellor Angela Merkel is due to address lower-house lawmakers on the crisis in Berlin midday today. As there are no major economic releases scheduled in Eurozone today, market participants will pay close attention on EU summit outcome.
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