News is due out on Wednesday, that I expect will show that the Euro area's gross domestic product (GDP) has likely fallen by 0.6% in the fourth quarter of 2012 as compared to the previous quarter.
Also on the cards for today, are reports due out from Italy, Germany and France with monthly purchasing manager index figures for service industries. All are expected to show contraction.
As a very weak number is expected for Euro area GDP, should European Central Bank (ECB) President Draghi signal any change to the economic outlook at a meeting on Thursday, market expectations for a rate cut will rise and this will put further downward pressure on the Euro.
It's likely that ECB could consider rate cuts and with the Italian political situation remaining unresolved for the moment, the Euro is likely to remain under pressure in the near term.
As a very weak number is expected for Euro area GDP, should European Central Bank (ECB) President Draghi signal any change to the economic outlook at a meeting on Thursday, market expectations for a rate cut will rise and this will put further downward pressure on the Euro.
It's likely that ECB could consider rate cuts and with the Italian political situation remaining unresolved for the moment, the Euro is likely to remain under pressure in the near term.
Earlier the Euro dropped 0.3% to 121.46 Yen and touched $1.3028.
The Yen, in contrast, has strengthened against most of its major peers, and was up 0.3% to 93.23 per Dollar.
Yen strength resulted after testimony from deputy governor nominees to the Bank of Japan (BOJ) had not raised any expectations for expanded monetary stimulus.
With uncertainty amongst BOJ nominees about just how long it will take for policy makers to get results, this has added some doubt as to how protracted a process this could be and this, in turn, is contributing to Yen strength.
The Yen, in contrast, has strengthened against most of its major peers, and was up 0.3% to 93.23 per Dollar.
Yen strength resulted after testimony from deputy governor nominees to the Bank of Japan (BOJ) had not raised any expectations for expanded monetary stimulus.
With uncertainty amongst BOJ nominees about just how long it will take for policy makers to get results, this has added some doubt as to how protracted a process this could be and this, in turn, is contributing to Yen strength.
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