Coming up Today (All Times GMT)
* GBP - Public Sector Net Borrowing (09:30)
* CAD - Core Retail Sales m/m (13:30)
* USD - CB Consumer Confidence (15:00)
* AUD - RBA Gov Stevens Speaks (22:00)
Risk aversion has been evident across the board as the ongoing Libyan crisis has induced investors to look for safe havens. The greenback has been stronger against all the majors, Asian equities have been plummeting, and crude oil has been moving nearer to the $100 /brl level. In other news, the New Zealand dollar fell sharply by more than 1.5% against the US dollar, as a strong earth quake hit the country's second largest city of Christchurch.
After showing weakness in holding onto gains above 1.37, the euro took a beating against the dollar, down about 0.7% on the session at around 1.3580. It seems that uncertainty over the escalating Libyan crisis has prompted investors to take profits off the table.
The pound has also been losing ground against the greenback, along with other risk assets like equities. According to some analysts, should the BOE be forced to raise rates on the back of a commodity led inflation, and especially at a time where growth and employment prospects look fragile, then this could turn out to be quite sterling negative.
February 22, 2011 - Markets.com