The pound is higher against the dollar after a report released yesterday showed that UK consumer confidence rose to the highest in seven months in January. A Gfk gauge of sentiment climbed to –29 points from –33 in December, the strongest reading since June. Looking ahead to today, at 9:30 we receive manufacturing PMI data for January, with expectations for the figure to have expanded to 51.00, after being below 50.0 for three consecutive months. Any reading below 50.00 is marking contraction in the sector. Overnight, Nationwide house prices index declined by –0.2% in January, a little below the forecast of flat prices. The housing market remains undermined in recent months, with prices remaining unchanged and activity subdued.
The euro dropped against most of its major rivals on concerns the country will follow Greece in needing more financial aid to avoid default. Portuguese treasury is auctioning government debt today for the first time since Fitch Ratings downgraded the country’s credit rating. The single currency remained under pressure as Greek government is having troubles concluding debt-swap talks with creditors. Looking ahead to today PMI Manufacturing across the euro region headline the economic calendar. The manufacturing figures are expected to remain subdued in Italy and France, with Germany being the only economy printing the expansion in the sector. Expect for the euro to remain under pressure as debt crisis in the region is undermining the single currency.
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