Positive investor sentiment continued yesterday with the release of strong manufacturing PMI data from around the world. Chinese data was particularly positive which eased concerns over a slowdown in the Far East. Manufacturing figures from the UK and the Eurozone were also above expectations, and US ISM manufacturing data came out at 7 month highs. Combined with further rumours of a solution to Greece’s debt woes, the bulls controlled the markets yesterday and risk appetite continued to rise. This has given US Dollar buyers an opportunity to put cover in place as we approach 2.5 month highs on GBP/USD and 2 month highs on EUR/USD. The threat of retracement looms large however – contact your dealer to discuss protection strategies.

The pound also found strength against the Euro yesterday, giving Euro buyers another bite at the cherry after recent drops in the GBP/EUR rate.

Today sees a relatively quiet day in terms of economic data. There will be interest in debt auctions from Madrid and Paris, and a positive outcome could add fuel to yesterday’s moves. The markets are mostly focused on tomorrow’s non-farm payroll figures from the USA however, the outcome of which will move the markets. Early indications suggest that the figure may not be of the level that the markets had hoped for making the opportunity for protection at current levels even more attractive.