Sterling-Euro currency pairing

Over the past week we have seen a steady decline for the Sterling-Euro currency pairing. With the bearish sentiment expressed towards the pound, Euro prices fell 1.6% over the week to a low of 1.1928 from previous highs just pushing over 1.21. Sterling began to slip on Monday after a weaker than expected reading of the UK services sector highlighted the fragility of the country’s economic recovery and thus prompted investors to take their profits from the pound’s rally over the last few weeks. With an increase in the supply of sterling on the currency market, prices naturally began to fall.

With few news releases holding much impact for the currency pairing this week until Thursday, the ongoing situation for BP as well as the aforementioned profit booking eroded the previously seen sterling strength, although at a pace subdued by weak GDP growth figures in Europe.

Financial talk within the UK recently has focused on the possibility of a ‘double-dip’ recession and the impact it would have.  Whilst the risk of Britain sinking back into a period of declining economic growth has grown in recent months, a 12-strong team of respected economists and business leaders on the Sky News Money Panel unanimously made the call that the UK would avoid a double dip. They confidently and correctly asserted the Bank of England would make no monetary policy changes following the July interest rate meeting. The same was true of the ECB who held European interest rates at 1%.

Economists said that the BoE was walking a tightrope between nervousness over rising inflation and growing concern about the impact of last month’s austerity budget on the struggling economy.

“The stickiness of UK inflation remains a concern but ‘lower for longer’ is likely to remain the theme when it comes to interest rates,” said Stephen Boyle, head of economics at Royal Bank of Scotland. Inflation is expected to climb even higher after the government ramped up VAT to 20% from 17.5%, set for introduction in January 2011.

It was because of this inflationary pressure that we saw dissent from policymaker Andrew Sentance at June’s MPC meeting. Expect to see more rumour and unrest within the MPC over the course of the year as pressure on inflation continues.

Sterling has rallied in the past month in the wake of a general election in May and the new coalition government’s budget announcement, this rally has however now started to wain due the possible impact of tax rises and spending cuts on the overall economy.

The trends displayed this past week demonstrate the worth of staying up to date in order to maximise your currency purchase potential. By contacting your account executive here at the Foremost Currency Group for a free consultation, we can help you to optimise that purchase. For example, buying €200,000 this past week on Friday instead of Monday would have meant a loss of over £2400. We can help you to avoid losses by giving you relevant economic information and opinion on trends within the currency market.

For the week starting 12th July, we see a whole host of data releases in the UK; GDP figures on Monday and the claimant count on Wednesday holding the most potential for placing pressure on sterling. Whilst in Europe, the German economic sentiment survey on Tuesday and inflation figures on Wednesday hold the most gravity.

For more information on how upcoming data releases may affect your currency, see the below for a concise round-up of volatile market moves or call in for consultation with your Account Manager here at the Foremost Currency Group. We keep abreast of key announcements from prominent government figures both here and in Europe, helping us to help you maximise your Sterling/Euro currency potential.

Euro High

Last week we saw the Euro reach a high of 1.2356 for the first time in more than 18 months. This as investors shunned the single currency on funding concerns in the Euro zone ahead of bank repayments to the European Central Bank as well as more debt auctions. The Pound extended gains after Bank of England policymaker Andrew Sentance stated that drastic tax hikes and spending cuts outlined in the new coalition government’s budget last week would not remove the need to start raising interest rates. As we have often seen in the past, with Sterling strength often comes some retraction. This as funding concerns in the Euro zone eased with Spain’s auction of 3.5 billion of five-year bonds having seen a lower bid-to-cover ratio but yields were only a touch higher than those at an auction in early May, easing concerns after a downbeat signal on ratings from Moody’s the previous day.

With the current volatility in the market placing Stop loss and Limit orders on a rate may prove be useful. When markets are volatile, placing an upper and lower limit allows you to still aim for a higher rate should markets move in your favour, while protecting you from loss should the markets move against you. These contracts are suitable whether you are buying or selling foreign currency. Contact us today to discuss these types of contract further

Looking forward to the week ahead the most important news coming from the UK may be the MPC (monetary policy committee) Rate Statement and the official bank rate both of which are set to be released on Thursday 8th July. The rate statement measures the Interest rate at which banks lend balances held at the BOE to other banks. With Short term interest rates being the paramount factor in currency valuation this tends to be significant. The official bank rate most importantly discusses the economic outlook and offers clues on the outcome of future votes and is released with Official Bank Rate. Although only issued if the bank rate changes it is among the primary tools the MPC uses to communicate with investors about monetary policy.

In Europe the most crucial news could be the minimum bid rate and the ECB press conference. The minimum bid rate is the Interest rate on the main refinancing operations that provide the bulk of liquidity to the banking system and is usually delivered about 45 minutes before the ECB press conference. The ECB interest rate statement like the UK official bank rate is the primary method that the ECB uses to communicate with investors regarding monetary policy. It covers in detail the factors that affected the most recent interest rate and other policy decisions, such as the overall economic outlook and inflation. Most importantly, it provides clues regarding future monetary policy. With all this in mind it could prove to be a crucial week for the Sterling/single currency pairing.

With the statements on the interest rate in both the UK and Europe and the growing financial crisis in the Euro zone this week is likely to be another volatile one. See the relevant data releases below for a concise round up of volatile market movers; however it is well worth taking the time for a consultation with an account manager here at Foremost Currency Group.

Fluctuation in exchange rates

Last week we witnessed another volatile week for Sterling against the single currency with a 3.2% fluctuation in exchange rates across the week. In real money terms, this equated to a difference of over £5,500 when purchasing €200,000. The movements came following a series of economic announcements in both the UK and the Eurozone further proving the fragile state of both economies and in turn their respective currencies.

The main details of note from a UK perspective came in the shape of the Consumer Price Index showing a hike by 0.6% taking the annual rate to 3.7%, higher than the expected 3.5% that had been forecast making the current level the highest seen in 17 months. This was followed by the bank of England minutes which showed an expected 9-0 vote from the Monetary Policy Committee to hold the base rate at 0.5% and pause its quantitative easing program at £200bn. The final piece of data released on Friday saw the UK’s budget deficit revised down to £156bn from £163bn. With reducing this figure a top priority for PM Cameron and deputy PM Clegg the news would have been well received as the new coalition government attempt to bring the UK out of the financial crisis it is still in.

The biggest news of the week in the Eurozone came from Germany where Chancellor Angela Merkel announced a ban on naked short selling. This caused investors to sell off the Euro causing some short term weakness for the single currency. This was followed by negative economic sentiment figures from Germany and the Eurozone as a whole with figures of 45.8 and 37.6 respectively being released.

When reviewing the weeks activity and the highlights listed above it further proves that Sterling is still in a fragile state. In normal circumstances last week would have surely led to significant strength for the Pound with negative news in the Eurozone and positive news in the UK. This as we saw did not materialise and those with an account open here at FCG were in the best position to protect themselves from market fluctuation. If you have yet to open a trading facility with you can do so by clicking here.

The week ahead sees a host of data releases for both the UK and Eurozone starting with the UKs revised GDP figure released on Tuesday morning. The other main releases are the UKs mortgage approvals, house pricing index and consumer confidence figures. In the Eurozone we will see consumer confidence figures and German CPI data released on Wednesday and Thursday respectively. With the above releases known to cause volatility on the markets it could be wise to get in touch with us here at FCG. For more information call us today on 01442 892060, and we can go through the tools available to you.

USD

GBP/USD hit a 14 month low last week as a result of further safe haven demand for the dollar. Recent weeks have seen a lack of investor confidence causing a fall in demand for riskier assets and a sharp increase in demand for perhaps the world’s safest asset, the Dollar. This was partly the result of a fall in prices across the commodities market sparking a sell off of the so called ‘commodity currencies’ such as the Australian, New Zealand and Canadian Dollar. Further Dollar gains were made on Thursday when news from the continuingly troubled Eurozone filtered through that German Chancellor Angela Merkel had announced unilateral ban on naked short selling. This helped fuel further concerns for the state of Euro Zone economy and led to a sell off of Euro investments.

In the UK CPI (Consumer Prices Index) and RPI (Retail Prices Index) were up, however Sterling failed to make any gains as concerns for its fiscal position (government debt) continued to worry the market. Additionally the BOE (Bank of England) announced its unanimous decision to keep interest rates at hold and to continue to put a pause to Quantitative Easing as expected. Finally, Friday gave the UK it’s only major piece of positive data release when Mortgage Approvals recorded a positive reading. However the rate remained in the dollar’s favour, failing to reward anyone looking to purchase dollars and suggesting that the market may continue to fall.

Looking forward to next week we have both UK and US GDP along with a series of data releases from both sides of the Atlantic. Although it is likely that these could effect Cable (GBP/USD) there is a stronger likelihood that the global economic climate will take a greater effect. Those looking to sell dollars can take advantage of today’s rate should speak to their FCG Account Manager about Forward Contracts. This will allow you to lock in to today’s rate for up to two years in advance and allow you to make the most of your currency exchange.

This Weeks Data

Below is a summary of the key data releases scheduled for each day this week. These scheduled released can cause volatility in the markets, but don’t discount other factors that aren’t scheduled, such as ongoing developments in the Eurozone that caused lots of volatility in the markets last week.

This week is fairly quiet, with not much data from the EU or UK other than GDP on Tuesday. For this reason, markets will likely be continuing to focus on risk sentiment. What’s that? Well, when investors are wary, they will move funds to perceived safer currencies such as the USD. That’s what we saw at the end of last week, when big selling in riskier currencies (GBP & EUR) caused large swings in rates.

It’s this risk sentiment along with ongoing developments in the Eurozone will be more important than the scheduled data this week.

Monday

Holidays in France, Germany, Switzerland and Canada today. Elsewhere we have some home sales data from the USA. Other than that it’s a quiet day, with nothing of note from the UK or EU.

Tuesday

From the UK, we’ll be watching the GDP data carefully, along with mortgage approvals. In the EU there are some industrial measures. Later in the day from the states we have Consumer Confidence and housing prices.

Wednesday

Yet more homes sales info from the states, and Trade balance from New Zealand later in the day. Rates for the Kiwi have risen somewhat in the last week – good figures here could bring rates back down.

Thursday

Consumer Prices from Germany gives an inflation indication, and can therefore have an impact on interest rates. From the US, we have jobless claims and more importantly, Gross Domestic Product. At midnight, Gfk release their consumer confidence figures for the UK which could cause movements for the pound.

Friday

Retail Sales for Germany, and some income and expenditure data from the states. That’s it for this week.

For more information on the information contained in this report, contact :

Tel: 01442 892060

Web: www.foremostcurrencygroup.co.uk

Air of uncertainty encapsulates the market

The past week has seen movement of a slightly less volatile nature than what we have seen in recent weeks for the Sterling-Euro cross, with a 1.8% shift between the highs and lows of the week, to put this into monetary terms it would mean a difference of £3,600 on a £200,000 trade. Sterling began the week strongly, anticipation of a change of government hanging optimistically in the air leading up to Thursday’s groundbreaking televised debate between main party leaders. Despite common belief that the policies revealed in this would have an affect on the market, we have actually seen very little change, mainly due to a lack of any hard financial policy being revealed. That said, Nick Clegg’s performance could prove to have a huge impact, if the Liberal Democrats receive a higher percentage of support in the opinion polls, fears of a hung parliament will undoubtedly have a negative impact on Sterling.

Tuesday saw the release of the Trade Balance by the Office of National Statistics, this is a balance between exports and imports of total goods and services in the UK. A positive value shows trade surplus, while a negative value shows trade deficit. The actual deficit revealed was a lot smaller than was initially anticipated at -2.1billion. This produced some volatility for GBP but was not of great significance. If a steady demand in exchange for UK exports had been seen, it would have turned into positive growth in the trade balance, causing further positive movement for GBP.

This coming week is set to produce several significant data releases. On Tuesday the Consumer Price Index (CPI) is released by the Office of National Statistics, it is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services. The purchase power of Sterling is dragged down by inflation. The CPI is a key indicator to measure inflation and changes in purchasing trends. Generally, a high reading is seen as positive (or bullish) for the Pound, while a low reading is seen as negative (or Bearish).

The Gross Domestic Product (GDP) released by the Office of National Statistics is a measure of the total value of all goods and services produced by the UK, this is released on Friday. The GDP is considered as a broad measure of the UK economic activity and health. Generally speaking, a rising trend has a positive effect on the Pound, while a falling trend is seen as negative (or bearish).

With these impending releases, an air of uncertainty encapsulates the market, meaning it would be the ideal time to lock in a rate with the Foremost Currency Group through means of a forward contract or placing a stop loss or limit order,   allowing your currency to be traded at a specified rate to protect against any unfavourable movement. Please contact us for further information on how these tools can be implemented.

Security in your currency exchange is paramount in such unpredictable times and this is provided by a forward contract, where you can lock in a rate for up to two years. Those with impending purchases in the Eurozone might look to consider booking a Forward contract with the Foremost Currency Group. By placing a 10% deposit, clients can eliminate the risk of an unstable GBP/EUR rate by locking in a price today for a transaction that will take place in the future, up to maximum of two years.

With all of these factors in mind, it is of utmost importance to speak with your specialist account managers to ensure you know all of the options available to you, ensuring you can make the right decisions when it comes to exchanging your currency, please feel free to contact us for a free consultation.

Influential data releases

The markets re-opened on Tuesday after the long Easter weekend to Gordon Brown’s announcement to fix the date of the general election for the 6^th May. GBP/EUR immediately came under major influence from the opinion polls, not in favour of a particular party, but in speculation of either party achieving a strong majority. Due to the British first-past-the-post electoral system, if neither party can obtain a strong enough majority the outcome results in a Hung Parliament. It’s feared that this scenario will result in a Government that lacks the power to take the tough actions needed to tackle the UK’s mounting debt problems and ultimately provide a strong enough platform for Sterling to make any long-term gains. Although the polls generally showed a mixed outcome, those showing a Conservative majority had the greatest influence and GBP/EUR steadily moved through the 1.13 barrier further encouraged by reoccurring concerns over the Greek economy.

By Thursday morning the opinion polls began to take a negative effect on Sterling and investors looked ahead to two of the week’s most influential data releases, UK Industrial Output and House Pricing Index. Industrial output rose 1.0 percent on the month in February, reversing a 0.5 percent fall in January. Output rose twice as fast as expected in February and posted its biggest monthly rise since September. Likewise the House Pricing Index showed a general rise in the value of UK housing and as a result GBP/EUR climbed to a 7 week high. Finally Thursday also saw the Bank of England keep interest rates on hold at 0.5% and freeze its asset purchasing scheme as expected.

Looking ahead it is likely that Sterling will come under further political influence and suggested that it may weaken as the election draws nearer. If you are looking to buy Euros you can safeguard your rate of exchange from any adverse movement and take advantage of today’s highs by locking in to a rate of exchange for up to two years into the future through a Forward Contract. However, with the saga in Greece continuing to threaten the Euro and the latest batch of UK data possibly marking a turning point for the UK economy, those selling Euros should consider the possible threat that Sterling may continue to make gains.

Sterling optimism

Over the past week we have seen a steady positive movement for the Sterling-Euro currency pairing. With the bullish behaviour exhibited by the Pound, Euro prices rose 1.8% from the lows to highs of the week. Starting the week with bad news for Sterling was the data released stating that the number of home loans weakened during this last quarter. This suggests the expectation that the Bank Of England and Monetary Policy Committee are likely to remain dovish in outlook, maintaining their current currency policy throughout the second quarter as the economy continues it’s protracted recovery.

The final revision of GDP for the 4th quarter on Tuesday coupled with data for the House Price Index; saw better results than in previous forecasts. This aided the Pounds’s ascent against all major currencies, only slowing slightly on Wednesday as Germany announced a contraction in unemployment figures.

Thursday saw a statement from the Bank Of England addressing the home loan issue previously mentioned; “some lenders commented that much of the fall in demand in Q1 was driven by temporary factors, such as the cold weather and the ending of the stamp duty holiday.” The feeling is that next three months will see a positive stance adopted by lending institutions giving Sterling strength in the currency markets. This good news as well as unexpected drops in German retail sales meant a rise in the GBP/EUR rate to it’s high of the week.

The trends displayed this past week demonstrate the worth of staying up to date in order to maximise your currency purchase potential. By contacting your account executive here at the Foremost Currency Group for a free consultation, we can help you to optimise that purchase. For example, buying €200,000 this past week on Thursday instead of Monday, could have meant a saving of over £3200.

In the financial markets, as we moved onto the 4 day Easter weekend; the Greek debt crisis reared it’s head. The market’s were apparently unconvinced by the EU’s IMF-assisted scheme to bailout the debt-ridden southern European economy, should they fail to finance their gaping fiscal shortfall.  Against a backdrop of lackluster interest rate outlook, last week’s dismal auction of 12-year Greek bonds saw only €390m sold, compared to the €1bn on offer.

The market seems intent to test the resolve of the EU by actually forcing through a bailout, making the Euro’s performance reliant on the brevity of policymakers.

The sloppy approach to the situation so far also bodes ill for the single currency. Indeed, if the Euro Zone can’t muster a response to troubles in a small member state like Greece – just 2.6 percent of the currency bloc’s economy – this surely invites unfavorable expectations about the kind of havoc that could be caused if a country like Spain (11.8% of Eurozone GDP) or even Italy (17% of Eurozone GDP) meet a similar fate.

Improvements in the GBP/EUR rate are subject to pressure this coming week as the economic calendar presents major event risks with the BoE rate decision and PMI Services both due this week.

Expectations are that the central bank will keep it’s benchmark lending rate at 0.50% and continue to pause its quantitative easing program at £200 billion. It is difficult to gauge market reaction to such a move as previous months have shown a stark difference in reaction to the same news. Closing the curtain on the program shows a vote of confidence in an improving economy and could lead to an extension of the recent rally seen by Sterling.

As we move ever closer to an impending General Election, news has shown that the Conservatives have managed to widen their lead in opinion polls (conducted by YouGov Plc), commanding 39 percent of the vote against Brown’s ruling Labour at 29 percent suggest a 20 seat majority and no hung parliament at the upcoming elections set to take place on the 6th May.

This Sterling optimism suggest that those with impending Euro sales should get in contact with FCG to help minimise any potential loss by calling on +44 (0) 1442 892060.

Business Climate in Germany

The past week has been rather volatile for the Sterling-Euro currency pairing with a 1.6% shift between the highs and the lows of the week. On Tuesday, data released pertaining to figures for both the Consumer Price and Retail Price Indices showed that inflation levels in the UK had contracted; giving strength to the Pound. However, Wednesday presented a good reading for the Business Climate in Germany anticipating Bullish movement for the Euro. This movement was further comPounded by Alistair Darling’s Budget report. Conservative leader David Cameron stated, “This chancellor has had his last chance….he totally failed….they (Labour) are carrying on spending and failing. The biggest risk to our [economic] recovery is five more years of this prime minister.” This all amounted to a fall in the GBP/EUR rate.

Thursday presented the high of the week on the back of greater than expected retails sales data in the UK; peaking at 1.1242 before quickly falling back to previous levels. We also saw a financial aid package agreed for Greece at the end of the week, providing €22bn should the debt-laden country run into difficulties borrowing money to service its high debt levels. Whilst this did give the Euro strength against the Pound and Dollar, analyst Ulrich Leuchtmann of Commerzbank said “the agreement is however, hardly reason for a significant correction.” This volatility in the currency pairing highlights the benefits of placing a ‘Stop Loss’ or ‘Limit Order’ on a contract with FCG. Talking to your Account Executive and knowing where to place a minimum and/or maximum on your exchange rate would help to optimise your purchase. This would safeguard against any potential loss should the market drop and ensure that you are able to take advantage of any upward spikes (as on Thursday) without having to stay glued to the markets.

As we look to the week ahead, there is still a lot of uncertainty remaining for the GBP/EUR cross. The Germans hold many of the answers over the next few days. On Monday, figures for inflation indices will be released in Berlin, with no forecast for whether the rate will have changed over the last year, though a rise in inflation would be seen as positive and adding strength to the Euro. Wednesday has data for unemployment change published by the German Statistics Office; with a rise predicted giving negative implications for consumer spending and subsequent economic growth.

As we approach the Easter weekend, German Retail Sales and Manufacturing Purchasing Managers Indices for both the Euro Zone and the UK are released. Whilst predictions are currently conservative with little growth predicted, it is worth stating the importance of a consultation with your account manager here at FCG.

www.foremostcurrencygroup.co.uk

Sterling-Euro currency pairing

The past week has seen slightly more volatile movement for the Sterling-Euro currency pairing, with a 2.3% shift between the highs and lows of the week. To put this into monetary terms it would mean a difference of £4,600 on a £200,000 trade. We have however seen some positive growth with Sterling, rising to its strongest position in three weeks against a weaker Euro on Thursday, as it extended gains due to the report published on Wednesday with the welcome news that unemployment figures in the UK were lower than expected. This news paired with continued speculation as to the economic instability of several Eurozone countries provided Sterling with a chance to strengthen. Sterling dropped again slightly at the end of the week due to a number of factors, not least the speech made by ECB President Trichet with regards to his crisis management plan, volatility is often experienced during his speeches as traders attempt to decipher interest rate clues. Also responsible for Sterling slipping slightly were the remarks by a Bank of England policymaker that there was some risk of a double-dip recession, although only a subjective opinion, his words have carried with them a weight that has injected a slightly apprehensive feeling amongst UK investors.

This coming week could prove to be a volatile time for the pound as a conclusion to the Greece bail-out saga should come to a head on Thursday. Sterling could strengthen if the plan is insufficient and lacks backing from Eurozone powerhouses France and Germany, but could also do the opposite should the bail out plan prove successful, in which case the euro will strengthen, weakening the value of GBP against it. Until the plan is released, an air of uncertainty encapsulates the market, meaning it would be the ideal time to lock in a rate with the Foremost Currency Group through means of a forward contract or placing a stop loss or limit order,   allowing your currency to be traded at a specified rate to protect against any unfavourable movement. Please contact us for further information on how these tools can be implemented.

Security in your currency exchange is paramount in such unpredictable times and this is provided by a forward contract, where you can lock in a rate for up to two years. Those with impending purchases in the Eurozone might look to consider booking a Forward contract with the Foremost Currency Group. By placing a 10% deposit, clients can eliminate the risk of an unstable GBP/EUR rate by locking in a price today for a transaction that will take place in the future, up to maximum of two years.

Sterling-Euro currency

The past week has been very flat for the Sterling-Euro currency pairing with only a 1.7% shift between the highs and the lows of the week on Monday and Thursday respectively. The general feeling has been that Sterling, broadly speaking, has gained during the week as growing speculation around various Euro states being on the ‘chopping board’ continues. This includes but is not limited to Portugal, Italy and Spain, all having been given negative mention by ratings agencies in recent times. However, with few data releases for both the UK and the Eurozone last week, volatility has been at a low for the two currencies. This low volatility in the currency pairing highlights the benefits of placing a ‘Stop Loss’ or ‘Limit Order’ on a contract. Talking to your Account Executive and knowing where to place a minimum and/or maximum on your exchange rate would help to optimise your purchase. This would safeguard against any potential loss should the market drop and ensure that you are able to take advantage of any upward spikes without having to stay glued to the news.

In contrast to this past week, the one ahead holds much uncertainty for the Euro. On Tuesday, those countries participating in the European Monetary Union will make a decision on whether to bailout Greece, whom are currently in the midst of a large debt crisis.

If Germany and France decide to show solidarity with Greece, it would indicate a positive outcome for the Eurozone economies as a whole and those clients looking to sell Euros.

Together with the important release on Wednesday of the Bank of England minutes, should we see any more rumour or mention of Quantitative Easing, we are likely to see at least a 1% drop in GBP/EUR as seen on all previous occurrences.

Drop against the Euro

Last week we witnessed another tough week for Sterling exchange rates versus a basket of currencies including around a 3.5% drop against the Euro at its lowest point. The decline came after speculation mounted that the UK could see a hung parliament when the election takes place in May. Political uncertainty is one of the biggest market movers and with such uncertainty it’s no surprise Sterling is seemingly on free fall. Many people are in the process of buying a property abroad and this drop could have increased a transaction by over £6000 based on a €200,000 transfer.

Even with this downward trend and outlook for that matter there is one word of caution from this trader. The currency markets are extremely volatile and often unpredictable so those with a transfer of Euros to Pounds may not see their requirement continually increasing. It is well documented of the problems currently being seen in Greece and this issue could turn rates around should increased negativity come to light. One of the tools available to private clients and businesses alike, would be a forward contract. This is a contract set up to protect clients from adverse market movements by locking in a rate of exchange today for anything up to two years in the future. All that is required is a 10% deposit to take the contract and protect yourself from future losses whichever way your currency needs to be moved.

Other news last week saw both the Bank of England and European Central Bank keep interest rates on hold for another month at 0.5% and 1% respectively. As expected the market did not react to this in any particular fashion however there is still further uncertainty as to whether the UK will increase its Quantitative Easing program in the months ahead. Many will be looking to the Bank of England minutes released in just over a week to see if the program was discussed in last weeks interest rate meeting, and what affect this could have on future exchange rate movements.

This week sees a limited number of data releases for the UK. Figures to be released will show Februarys GDP estimate and manufacturing production figures.