Sterling had a mixed day yesterday losing ground against the euro and gaining against the US dollar. Data released showing that the level of public sector borrowing was worse than expected due to a rise in government spending and a fall in tax receipts undermined sterling. Other data released from the Confederation of British Industry (CBI) outlined that manufacturers expect orders to drop in the next three months by more than the market had initially estimated which is clearly a worry and again undermined sterling. The reason for sterling gaining against the US dollar was increased risk appetite arising from news elsewhere. With very little data released in the UK today the markets will keep a close eye on the meetings in Greece and the Federal Open Market Committee (FOMC) meeting minutes released in the US for influence. Call in now for the latest rates.

The euro had a relatively strong day as markets continued to speculate that the European Central bank (ECB) will intervene in Government borrowing costs by capping bond yields. Furthermore, a relatively strong Spanish bond auction helped the single currency maintain its strength. The main focus today will be on the Greek Prime minister’s meeting with the leaders of Germany, France and Luxembourg (also the Eurogroup chief) where he hopes to try and renegotiate the austerity measures that are currently in place. Any news or announcements following these meetings could cause a lot of volatility; so, call in now for the latest news.

The US dollar had a poor day yesterday weakening off against the majority of currencies as risk aversion drove the market due to central bank speculation from the ECB and The Peoples Bank of China taking measures to increase liquidity. The US market will pay close attention to the FOMC meeting minutes released this evening which should give some insight into the central banks potential for loosening monetary policy in the near future. Other data released today will show the number of existing homes sold in the previous month. Get the latest news by calling in.

Elsewhere, the Australian dollar started the day well following the release of the Reserve Bank of Australia’s (RBA) monetary policy meeting minutes which made no suggestion that it would be looking to loosen monetary policy in the near future. Other figures released showed that inflation expectations in New Zealand have decreased to 2.3% and the total value of sales made by wholesalers in Canada was much lower than anticipated. Overnight we saw the release of trade balance data from Japan; but, the main release today will be the retail sales figures released from Canada. Call in now for the latest news and a live quote.

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