On Friday the main focus once more was away from UK with the attention of the market drawn to the US unemployment data and the ongoing Euro zone Greek refinancing. The only significant UK data released was the Services Purchasing Managers Index (PMI) which came in much better than expected. Following the release of the unemployment data out in the US, risk appetite increased which resulted in sterling weakening against the Canadian Dollar, New Zealand dollar and Australian dollar. This week in the UK we have the release of manufacturing data, but the main focus will be on Thursday where we will discover if the Bank of England will expand the asset purchase program with a further round of quantitative easing. The expectation is an additional £50 billion which will increase the programme of quantitative easing from £275billion to £325billion. The official bank rate is widely expected to remain at 0.5%. Call in now for the latest update and the latest news.

On Friday a Greek government spokesman said that a basic outline of a deal on the Greek debt restructuring has been agreed and that talks were now underway for the second EU/IMF financing package. Moreover, Greek political leaders have been instructed that they must provide a response to demands by international creditors on economic measures by 11am this morning. As a result, we could see some volatility early on. The Euro zone PMI figures were released which came in as expected. Greece will remain the main focus in the Euro zone this week with the whole world looking to see if and how the ongoing problems will be resolved. The European Central Bank’s interest rate decision will be announced on Thursday with the general consensus suggesting that the rate will remain at 1.00%. German trade balance data and Euro zone investor confidence is also released this week. Call in now for the latest update and the latest news.

In the US on Friday, much better than expected US unemployment data was released with the unemployment rate falling to the lowest level since February 2009. The US Institute for Supply management (ISM) Non-Manufacturing PMI also came in better than expected which weakened the dollar as risk appetite drove the market once more. This release of positive data suggests that there are better long term prospects for the US economy and potentially no need for more quantitative easing. President Obama reiterated this sentiment saying that the economy is getting stronger and that the recovery is speeding up. Out this week in the US there is further unemployment data and the release of trade balance data. The Chairman of the Federal Bank is speaking on two separate occasions. Call in now for the latest update and the latest news.

Elsewhere, on Friday the Australian dollar and the New Zealand dollar strengthened on the back of the positive global economic outlook following the better than expected US unemployment data whilst the yen weakened. The Swiss government said that the Swiss franc cap of at least 1.20 per euro will be enforced at an absolute minimum. Canadian unemployment data came in worse than expected seeing the jobless rate rise to 9 month high. Out this week, we see the release of the Australian interest rate decision which is currently expected to be reduced from 4.25% to 4.00%. There is also the release of the Australian, Canadian and Chinese trade balance data and unemployment data in New Zealand. Call in now for the latest update and the latest news.

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