Yesterday’s German IFO survey shocked the market by posting a positive figure on the outlook of the German economy and euro benefited strongly. EUR/USD has
moved back towards the 1.58 level while GBP/EUR has dipped below the 1.25 level for the first time in 4 weeks.

Minutes from both the Bank of England and the FOMC were released yesterday painting parallel pictures of their respective ailing economies. Only Blanchflower, the perennial dove, voted for a cut and comments alongside the release indicate that the time when a majority follow him in voting to cut rates
could be a way off.

Similarly Ben Bernanke and the Fed is concerned over high inflation and has cut its 2008 growth rate to a maximum of 1.2% citing ‘weak’ activity in H1 but ‘some rebound is anticipated’ in the second half.

Today’s UK retail sales figure has been looming large on the horizon since the Bank of England’s Quarterly Inflation report 2 weeks ago; the figure is expected to drop given a fall in household spending.
Today’s Data
UK: 09.30 Retail Sales
Expected: -0.6%
Previous: -0.4%
EU: 10.00 Industrial New Orders
Expected: -0.5%
Previous: 0.6%
UK: 11.00 CBI Industrial Trends
Expected: -12
Previous: -13
US: 13.30 Initial Jobless Claims
Expected: 370k
Previous: 371k
Indicative Rates
Sell Buy
GBPEUR 1.2477 1.2503
GBPUSD 1.9726 1.9749
EURUSD 1.5787 1.5812
GBPJPY 202.42 204.57
GBPAUD 2.0478 2.0528
GBPNZD 2.5030 2.5083
GBPCAD 1.9409 1.9470
GBPZAR 15.22 15.27
USDZAR 7.70 7.73
GBPPLN 4.2535 4.2800
Rates are dependent on amount transacted
Please call 0207 801 9080 for a live rate quote

Email: (jeremy.cook@worldfirst.com) Please feel free to contact me at anytime regarding these briefings, if you have any questions or thoughts on them, or if you are interested in a particular event in the calendar.Please call us on 0800 783 6022 / +44 20 7801 9080 if you would like to discuss the markets or fix a rate.

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The above comments are only our views and should not be construed as advice. You should act using your own information and judgement. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute the authors own judgement as of the date of the briefing and are subject to change without notice.

Any rates given are interbank and therefore for amounts of £5million and so are not indicative of rates offered by World First for smaller amounts.

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