UK unemployment continues to grow hitting 17 year highs as the private sector is unable to take up the slack from those being made unemployed in the public sector. Unemployment for the under 25’s is over 20%. We also had yesterday the Bank of England forecasts for the UK economy which reduced growth expectations over the next 9 months to nil as a result of the problems in the euro zone which is the UK’s main export market. Further quantitative easing is being talked about which meant that sterling gave back its morning gains against the euro in the afternoon. One positive from the BoE was their expectation that inflation would be less than 2% by the end of 2012. But they have been wrong before. So the UK is not in a great position economy wise. Call in now to get a rate to minimise risk in these difficult times.

Business confidence in the euro zone begins to ebb away as the markets wait for a comprehensive and believable plan with regard to restructuring of their debts, bank and government. Yields on Italian government debt hovered around the 7% level which given that this seemed to be dependent on buying by the European Central Bank is not comforting. So as uncertainty reigns and I suggest you give us a call to get the latest update.

The US$ continues to benefit from its safe haven status and strengthen against sterling. But the US economy is also suffering from the uncertainty in the euro zone and expectations for US company performances such as the banks are beginning to be downgraded.

The commodity backed currencies held their own yesterday. The euro zone crisis is having an effect on business confidence worldwide and although still growing the Far East is still dependent on what happens in the northern hemisphere.

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