·         UK grows but not by much

·         0.1% against 0.4% expected signals long road to recovery.

·         Euro weak as Greece continues to look for funding

·         Australian inflation points to rate rise at next RBA meeting

·         Japanese Yen outlook downgraded to negative by S&P

All this and more is available on our blog. Click here  http://www.worldfirst.com/blog

Unless you decided to spend yesterday living under a rock you will know that the UK emerged, technically, from recession yesterday. It would be like the Brits however to leave the thinnest margin. So celebration is all well and good but this is definitely an Asda cava moment as opposed to the time to crack open the Pol Roger Cuvee Churchill; we are still deep within the economic woods.

Naturally, given that commentators were looking for 0.4%, sterling fell on the 0.1% disappointment. Looking behind the figures there is no particular sector that was exceptionally poor, everything had a hint of malaise. But as the wonks from the ONS were quick to point out this figure only represents 40% of the data and as such revisions, and potentially large ones, are expected.

While sterling fell it was able to stay within its recent trading ranges against the majors.

The euro is once again on the back foot as Greece attempts to wrangle its debt to investors. Its next target, according to the FT, is China. China obviously has the largest FX reserves in the world at some $2.4trn but it seems Greece is having trouble getting the investment and have called in bankers from Goldman Sachs to advise on the deal.

Our belief, published in November, that we would see an interest rate hike in Australia is looking extremely prescient after its inflation figures were published yesterday. Inflation rose by 0.5% in the three months to December and the market is now pricing in at least a  25bp hike at the next meeting, scheduled for this coming Tuesday.

In other news S&P downgraded their outlook on the Japanese yen yesterday from neutral to negative. This is on the view that ‘diminished fiscal flexibility’ could lead to a deflationary spiral in the land of the rising sun. The yen was strong however yesterday as investors looked for haven investments with equity markets proving to be volatile.

Today’s economic highlights come in the form of CBI Distributive Trades at 11am, US New Home Sales at 3pm and the Fed announcement at 7.15pm.

 You can also follow us live on Twitter at http://twitter.com/World_First

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