The euro dollar exchange rate is 0.042% lower on the day with 1 EUR = 1.4445 USD. The single currency sold off yesterday on what was a bad news session from the eurozone. Speculation is growing that the ECB will cut interest rates to safeguard growth, rather than raise rates to contain inflation, which weighed on the euro yesterday. Despite this though, the euro remains at solid levels against the dollar. Improvements in European stocks bode well for risk appetite moving forward. The Euro Dollar exchange rate will find guidance from US data this afternoon that is expected to be mixed but given that risks are to the downside on the data and that risk appetite is on the up, this pair may bounce back a little today. The Pound Elsewhere, the British Pound looks vulnerable almost across the board this week. UK net lending and money supply data was poor yesterday and consumer confidence data remains at very low levels indeed. The euro was on the back foot itself yesterday. The issue of Finnish demands for collateral in return for Greek aid resurfaced yesterday, and there was also some fairly weak demand at an Italian debt auction. "GBP EUR continues to trade around the €1.13 but a dip lower is looking increasingly likely as the euro continues to enjoy hefty investment from Asian sovereign buyers," says a note from UK money transfer company Caxton Fx.

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