We have another one of our hugely successful ‘Bank of England’ webinars this Thursday at 14.00 BST. Last month’s predicted the GBP fall to 1.10 and 1.60 against the euro and the dollar respectively; what will we predict on Thursday? Email me at research@worldfirst.com if you need an invitation.

An article in The Independent newspaper sent the US dollar lower yesterday as it reported that Saudi Arabia in cahoots with China had met to discuss replacing the US dollar as the global pricing unit for a barrel of oil. Whilst some analysts viewed this as absurd the USD sold off heavily against most of its counterparts as it only added to the very negative light that the greenback is being cast in at this moment.

One currency unfortunately USD did not lose ground against was GBP as shockingly bad industrial and manufacturing production told for the pound during the session. We worried that, following last week’s gloomy manufacturing PMI, these releases would be poor but nowhere near where they actually emerged. Both Industrial and Manufacturing Production both fell by over 11% on a year on year measure against consensus views of around 9%.

Sterling has not been helped also by the comments from Lord Mandelsohn that joining the euro is ultimately the Labour government’s aim for the pound but may not get a chance given their election prospects. Much as I’d love to take five minutes to denounce this particular plan I’ll save that for the webinar (details of how to register are above)

Overnight UK Consumer Confidence has been released above consensus at a level of 71, the highest since April 2008. Many believe this to be higher as the public starts to believe the recession is coming to an end.

Data wise we have European GDP for Q2 at 10.00, BRC shop prices for the UK at 10.30 and German Factory Orders at 11.00

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