The euro has strengthened in the forex markets overnight on the news that Ireland has applied for a bailout to help fund itself and save its banks. In doing so, it became the second euro member to seek a rescue from the European Union and the International Monetary Fund after Greece.

The CFDs trading markets saw the single currency touch a one week high of $1.3768 against the dollar in response whilst stocks look set for a rebound. Ireland will channel some of the money from the European Union and International Monetary Fund to banks through a “contingent” capital fund, Brian Lenihan told reporters late yesterday.

The rest of the package, which is estimated to total €80 – 90 billion, will help Ireland avoid having to sell bonds. However, the deal may not be concluded until the end of this month as the various parties are still negotiating the conditions.

The issue of Ireland asking for an EU/IMF rescue package will also remain the key factor for currency trading today since there is no key economic data on the agenda. The Euro-Zone consumer confidence data is interesting, but not really a mover for currency trading and the same is true for the Chicago Fed National activity index.

The UK economic calendar is also empty today although the markets will be keeping an eye on Wednesday’s release of the revisions and details of the Q3 GDP to see if the remarkably strong first estimate of 0.8% Quarter on Quarter growth will be confirmed.

In the US, the Thanksgiving holiday later this week means that there will be a glut of economic data on Tuesday and Wednesday. The FOMC minutes are the highlight and will more than likely show much more information about Quantitative Easing than the vote tally revealed in the FOMC’s most recent statement. Wednesday also sees the release of personal income and spending reports and new and existing home sales data.

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