The pound euro exchange rate is 0.081% lower with 1 GBP = 1.1277 EUR. The pound dollar exchange rate is 0.123% lower on the day with 1 GBP = 1.6289 USD. The British Pound has suffered as global equity markets start to once again register gains. This kind of risk-on environment has tended to benefit the euro in particular. The key concern for the British Pound continues to be the poor economic data flow coming out of the UK. Until this is arrested and the UK economy starts to grow again the GBP will remain under pressure. Elsewhere, currency markets are flat this morning on the whole with a smidgen of dollar weakness. The euro recouped losses following the poor EU confidence number in the morning after the US confidence data disappointed and just now EUR/USD has surged back above the 1.4400 level to 1.4460 following better than expected German unemployment data. Over the near term resistance is seen at 1.4475 and then 1.4525/50 with support expected at 1.4380/50 and then 1.4290. And gold prices received a boost from the bad data that came out of the EU and we can probably expect further strength from the yellow metal if the data remains poor. A little bit of profit taking this morning brings us to 1829 so near term support and resistance are seen at 1810, 1770/42 and 1855/71/95 respectively.

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