Sterling had a positive day buoyed primarily by the comments from the Governor of the Bank of England who stated his feeling that cutting the central bank’s interests rates would be more damaging than beneficial; therefore, dramatically reducing the probability of an interest rate cut in the near to medium turn. He went on to say that quantitative easing remained the primary instrument to stimulate the economy from a monetary policy perspective. Furthermore, the Governor and other member of the Bank of England also expressed their feelings that the economy would rebound in the third quarter. However, contrary to this positivity the Governor downgraded the UK’s growth forecasts whilst the inflation report was also particularly gloomy. Trade balance data is the main release on the agenda today in what is otherwise a relatively quiet day in the UK. Call in now to see if sterling can remain at these levels.

The euro had a particularly poor day yesterday dropping against the majority of currencies with Spanish benchmark 10 year bond yields climbed back up to nearly 7%. Standard and Poor’s (one of the big three credit rating agencies) lowered Greece’s CCC credit rating outlook to negative which highlights the difficulties that Greece continues to have with its debt. The Bank of France downgraded its growth forecasts and German industrial production fell by more than anticipated which highlights the poor state of the Euro zone economy. With little data out today other than the European Central Banks’s monthly bulletin the markets will look elsewhere for influence; so, call in now to get a live update.

The US dollar had a mixed day yesterday with contrasting comments coming from two members of the Federal bank over the last couple of days, one of which is calling for another round of quantitative easing to be implemented and the other suggesting that no such measures are necessary. Out today, unemployment data and trade balance figures will be the main releases; so, call in now to get the latest rates.

Elsewhere, the Norwegian krone, Swedish krona and South African rand all performed particularly well yesterday. Unemployment data from New Zealand and Australia was released overnight; whilst, Chinese Consumer Price Index (CPI) inflation figures and the Bank of Japan's rate decision were also announced. Later on today, trade balance data from Canada will be released. Call in now for the latest news and a live quote.

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