As I mentioned yesterday, we are a bit light on the ground data-wise this week so I apologise in advance if I repeat myself to pad the market analysis out. One point not mentioned was regarding the one day trade forum hosted by China overnight. In it, Vice-premier Wang Qishan expressed support for the European Unions attempts to control the sovereign debt crisis in Europe. The news helped the Euro claw back some of the losses incurred in the European and American trading sessions, but this morning’s announcement by rating agency Moody’s that it is placing Portuguese debt on review in light of a possible downgrade, means the Euro has started the day on the back foot. On the plus side for the single currency, German consumer confidence remains high according to figures released this morning. But it has slipped back from highs of a month ago and missed the forecast level of 5.7.

UK public borrowing figures have just been released and are, in a word, dire. Net borrowing figures were over £4 Bln higher than forecast and one would think that these figures will be used to lend political support to the government deficit reduction plan. Sterling dropped over half a cent against the Dollar on the back of the announcement and continued low consumer confidence data is also weighing on the Pound in early trading. Festive cheer for Sterling seems to in short supply in the market in the run up to Christmas.

With little expected to move the markets in the next three days we have decided to make this the last daily market analysis for 2010. It has been a pretty turbulent year, the slow economic recovery has been punctuated with Countries rather than companies dominating the headlines and that means Currencies have been centre stage for almost the whole of 2010.  Let’s hope next year brings calmer waters!  We will restart refreshed on the 4th of January so from everyone here at Currencies Direct we wish you a very Merry Christmas and a happy New Year!

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