Sterling gained yesterday against the US dollar after figures released showed that UK inflation accelerated more than forecast. With many analysts expecting a drop in inflation, figures showed that the annual rate increased to 4.4% in July – up from 4.2% the previous month and more than the 4.3% that had been forecast. Sterling gained against most of its major counterparts as the likelihood of further quantitative easing fell. Later today, the Bank of England releases the minutes from its previous meeting when it left rates on hold. The results could be mixed, given yesterday’s inflation and Bank of England governor Mervyn King’s recent comments regarding potential further monetary stimulus. Call in now to ensure you don’t lose out due to adverse market movements.

In the euro zone, the euro fell after data showed that GDP growth in the region slowed more than had been forecast, adding to concerns that nations in the region will struggle to rein in budget deficits. GDP rose by a mere 0.2% in the 2nd quarter – lower than the 0.3% forecast and the worst figures since late 2009. The euro also slipped ahead of a key meeting between French President Sarkozy and German Chancellor Merkel in which they were expected to discuss ways to tighten up enforcement of EU budget rules. Markets are concerned that most avenues have been exhausted. Call in now for a live exchange rate.

In the USA, US industrial production climbed in July by the most this year, gaining 0.9% after a 0.4% gain the prior month – beating expectations. In addition, credit rating agency Fitch Ratings affirmed the United States' AAA rating with a stable outlook. This boost of positive news helped increase risk appetite amongst investors and they moved out of the US dollar, which saw it weaken. Out later today there is wholesale price inflation, so ensure you protect yourself against any sudden moves by speaking to a member of the team now.

Elsewhere the Swiss franc posted losses for a 4th straight day as speculation was rife that the Swiss central bank would impose a currency peg against the euro. In addition, the South African rand gained by 1.6% against the euro on the news over European growth. Call in now to speak to a trader for a price.

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