EU Summit in Focus

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With two major events – ECB’s liquidity operation and Bernanke’s testimony - out of the way, the focus has shifted to headlines emerging from the EU summit. The European Council President, Herman Van Rompuy, stated that Eurozone leaders are likely to reassess the adequacy of the overall ceiling of the EFSF and the ESM only by the end of March 2012. Meanwhile, data released earlier today indicated an unexpected monthly decline in German retail sales, leading to gains for the Pound against the Euro.

Also aiding Sterling is the just announced higher than expected rise in UK’s construction PMI for February.

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