By FX Empire.com
On Monday, the pair rebounded after showing a significant drop over the past four weeks in the wake of the turbulences from the euro area which enhanced demand on the dollar as a refuge.
With some optimism and hopes that European leaders will intensify their efforts to ease the debt crisis, the pair showed a drop.
On Nov. 29, European finance ministers will meet to discuss the capability of the EFSF to insure from 20 percent to 30 percent of sovereign bonds, while will show that Greece will receive the next tranche of last year’s 110 billion euros aid package.
Also, Italian newspaper La Stampa mentioned that the IMF is preparing for a rescue fund forItalythat may reach up to 600 billion euros.
However, the pound gains were affected by the British Chambers of Commerce cut toU.K.growth forecasts and OECD predictions.
The BCC lowed growth forecasts to 0.8% and 0.9% this year and next instead of the prior estimates of 1.1% and 2.1% respectively.
The OECD, on the other hand, said the British economy will expand 0.5% next year and 1.8% the year after.
It is more likely that policy makers would expand non-standard measures by 125 billion pounds to raise its sum to 400 billion pounds in early 2012 to spur the weak growth pace to overcome the slowdown in global growth and turbulences from the euro area, according to the OECD.
On Tuesday, at 09:30 GMT, mortgage approvals, M4 money supply and net lending for Oct. will be due. At 23:01 GMT, theUKwill release Gfk consumer confidence for Nov. with expectations of seeing a drop to -34 from -32.
In theU.S., the main focus will be housing data starting with S&P/caseShiller, due at 14:00 GMT, followed by new home sales due at 14:00 GMT. At 15:00 GMT, consumer confidence is expected to soar to 44.4 in Nov. from 39.8.
Originally posted here
