Weds Report

CURRENCY
RATE

EURGBP
Euro - Sterling
0.7352

GBPEUR
Sterling - Euro
1.3275

GBPUSD
Sterling - US Dollar
1.9350

EURUSD
Euro – US Dollar
1.4352

GBPAUD
Sterling - Australian Dollar
2.1420

GBPNZD
Sterling - New Zealand Dollar
2.4705

GBPCAD
Sterling - Canadian Dollar
1.9345

GBPZAR
Sterling - South African Rand
14.9525

EURSEK
Euro - Swedish Krona
9.4054

EURDKK
Euro - Danish Krone
7.4520

EURNOK
Euro - Norwegian Krone
7.9983

GBPSEK
Sterling - Swedish Krona
12.6528

GBPDKK
Sterling - Danish Krone
10.0204

GBPNOK
Sterling - Norwegian Krone
10.7574

GBPJPY
Sterling – Japanese Yen
209.60


INTEREST RATES


UK
Base Lending
5..25

USA
Base Lending
3.00

EUROPE
Base Lending
4.00


Annual Euribor
4.75


Monthly Euribor
4.29


3 Month Euro Libor
4.78


6 Month Euribor
4.79


IRPH
5.56




Latest Market News



British Pound: Vulnerable to Further Weakness



Although the market’s focus today will be on US retail sales, the British pound will also be in play with employment numbers and the Quarterly Inflation Report due for release.



Producer prices grew by the fastest pace in 16 years but the growth of consumer prices fell short of expectations in the month of January. In fact, CPI dropped 0.7 percent, which was the sharpest plunge in a year – though the annual rate edged up to 2.2 percent. What does this mean for the outlook for UK interest rates? It is murkier than ever. For this reason, today’s reports will be exceptionally important. It will be interesting to see if the Bank of England is still worried about inflationary pressures in their Quarterly Inflation Report. Employment could also weaken, with the labor market components of manufacturing and construction sector PMI declining sharply in the month of January.



Euro: Strongest Rally This Month



Pressures on the ECB to cut interest rates was eased as the ZEW Survey showed a surprising improvement in German Investor Confidence, and led to the biggest gain for the euro this month.



Investor confidence beat expectations as it rebounded from a 15 year record low of minus 45 to minus 39.5. The resilience amongst European investors has stoked further speculation that the ECB will not look to cut rates in the near future as the German Finance Minister Peer Steinbrueck refuted growing speculation that President Jean-Claude Trichet will take a neutral stance on the ECB’s monetary policy. The German Wholesale Price Index and Eurozone’s Industrial Production figures are due for release tomorrow

info@imsfx.org