The Eurozone is struggling to manage their finances and the euro is suffering significantly as a result. ECB president Jean Claude Trichet will attempt to calm markets fears on Thursday in the ECB press conference. Attempts to calm the markets concerns over the Eurozone however have been numerous in the past few months and have had little effect. It would seem that the more finance ministers and ECB speakers claim there isn’t a problem, the more the market believes that there is.

The UK markets have been hit this morning on disappointing house price news released from the halifax group. The expectation was that house prices would dip 0.4% on a month on month basis. The actual fall was three times this at -1.3%. This news is still being absorbed by the financial markets this morning but does not bode well for the UK economy moving into 2011.

On the back of positive US economic data earlier this week the markets in the US have gained anticipating a positive Non Farm Payrolls result today. The expectation is that NFP’s will add 175,000 versus 39,000 in November. If expectations are not met we could however see the market reel with dissapointment. Non Farms is historically one of the most volatile and influential data releases in the FX calender. The release will undoubtedly set the tone for the day.

The dollar is up across the board Wednesday morning following a tremendously positive and surprising report on private sector jobs in the United States.

The GBP was supported by yesterday’s release of a better than expected UK CIPS manufacturing PMI for December, with the data raising hopes that the UK’s recovery momentum can be maintained going into 2011. The GBP/USD rose sharply following a robust manufacturing report but failed to break from its bearish trend pattern as the pound has been under pressure on the back of a dimming growth outlook.
The December PMI reading improved to 58.3 from 57.5, beating expectations for a decline to 57.2 and reaching the highest level in …

According to a recent survey by CNN Money, top economists are projecting a 3.1 per cent gross domestic product (GDP) for the United States economy during the final quarter of 2010, after a 2.6 per cent third quarter increase.

The euro remains under downward pressure versus other majors, falling to just below the $1.31 level against the dollar yesterday afternoon as Moody’s voiced concerns about Spain’s credit rating. It regained some composure overnight and in early morning trading on a round of short-covering, also aided by comments from China that it backed efforts by Europe to stabilise the global markets following the debt crisis, suggesting that it may up its share of eurozone debt in its foreign reserves. Nonetheless, downside risks remain as markets continue to focus on eurozone …