It was not only against the Dollar that the Euro made gains in trading yesterday. Following the release of meeting minutes from the Monetary Policy Committee (MPC) of the Bank o England, the Euro moved to a one week high against the Sterling. The MPC could not give a clear indication on whether the British economy is improving or not heading into the New Year. Consequently investor confidence was shaken, a sentiment the Euro was able to capitalize on.
Currently EUR/GBP is trading at 0.8974, an 8-day high. With no major news events for either the Euro or Sterling scheduled for Thursday, traders can expect the current values to hold into next week when markets reopen following the Christmas holiday.
Today traders will want to keep an eye on the economic indicators coming out of the U.S. Any figure below the forecasted numbers would likely solidify the Euro gains made yesterday. On the other hand, the U.S. has had continuously strong unemployment numbers the past several weeks. If this trend continues, it could mean bad news for the Euro.