Sterling had a steady day on Wednesday after the Bank of England’s meeting minutes were slightly less downbeat than had been expected. In contrast to last month, only one member discussed the potential need for further Quantitative Easing. MPC members again voted 7-2 in favour of keeping rates on hold at 0.5%. Sterling crept up against the US dollar, finishing the day at $1.6123/£1 but tracked the US dollar downwards against the euro which made gains on cautious optimism over a potential solution for Greece in a meeting later today. However, investors are still very much concerned over the UK’s exposure to the European sovereign debt crisis, with uncertainty as to what the impact would be in the case of a default. Out today, there are key public sector borrowing figures and retail sales data for the month. Both have a tendency to cause volatility so call in now for a live exchange rate to avoid losing out.

The euro advanced to the highest level in almost a week against the dollar on optimism European leaders will reach an agreement on the region’s debt crisis later today. Some French ministers said that European leaders were less divided than the media was reporting and were likely to reach an agreement at the summit that will alleviate Greece's debt woes. The quiet confidence in the market yesterday helped Italian and Spanish bond yields to fall, having hit record levels on Monday. There is a wide array of data out today in addition which could see volatility – call in now for a live exchange rate.

In the USA, the US dollar dropped yesterday as risk appetite saw investors unwind safe haven positions and sell US dollars. In addition to confidence over a potential Greek solution today, President Obama and several other Congressional leaders endorsed a new bi-partisan debt ceiling proposal which is aimed at averting default and reducing the deficit in the long run. Markets are feeling slightly happier now the prospect of a US default has all but been averted with this new plan. Fed Chairman Ben Bernanke speaks later today so call in now for a live exchange rate.

Elsewhere, commodity-linked currencies were helped by stronger risk appetite with the Australian dollar making gains against the US dollar. The Canadian dollar reached its highest since early May, helped by a rise in crude oil prices and also interest from a Chinese oil producer in acquiring a Canadian company. Call in now to speak to one of the team and protect yourself.

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