After something of a volatile week for the main forex pairs, both EUR/USD and GBP/USD have been firmly in reverse for much of the day as some familiar concerns came back into focus.
The morning's main event was the first revision to the second quarter GDP figure for the UK. This came in at -0.5%, slightly better than the -0.7% initially announced in July but still showing that the British economy is far from healthy. This has served to keep pressure on the pound for much of the session, as once again traders weigh up whether this will force the Bank of England into turning on the printing presses and providing more QE in order to bolster the economy.
Some even more familiar concerns have dominated trading this afternoon. After giving all of us a break for much of the summer, the eurozone debt crisis has continued to loom larger once more in traders' minds as meetings between government leaders and finance ministers continue. Earlier in the week there had been the feeling that Germany would be willing to give Greece a little more time when it came to meeting its bailout terms, but this would appear to be contradicted by Chancellor Merkel's hard stance today. We go into the weekend with EUR/USD ahead by a comfortable 150 points for the week, and the pair is likely to be the market to watch as we return to more normal levels of activity next week.