Sterling reached its highest price in a week against the euro

In the UK unemployment increased by 48,000 between October and December to 2.67million which was in line with expectations. The number of people claiming jobseeker’s allowance also rose by 6,900 to 1.6 million, which is the highest it has been since January 2010. The poor unemployment data alongside evidence that the economy contracted in the fourth quarter is fuelling claims that the government has tried to cut the deficit too quickly. The Bank of England also hinted at the potential for more Quantitative Easing due to the quarterly inflation report presenting new, higher inflation forecasts. The Governor of the Bank of England stated that the UK economy faced “substantial headwinds” that are “hampering our recovery and rebalancing,” Economic data is fairly light in the UK today as the markets look for any developments surrounding Greece Call in now for the latest update and the latest news. The euro weakened against the majority of currencies as further concerns arose with regards to the potential second bailout for Greece. Rumours have been circulating that certain Euro zone governments have lost confidence that Greece can adhere to its promises. Apparently proposals were being discussed to potentially delay part or the entire Greek package. The Euro zone’s economy contracted in the last quarter of 2011; but, the German economy shrank by less than expected and the French economy unexpectedly grew showing that whilst there is the potential of a mild recession on the horizon, there is also the potential for growth in the first quarter of this year. Not much data is released in Europe today as the focus remains firmly on Greece. Call in now for the latest update and the latest news. In the US, data released yesterday showed that the balance of domestic and foreign investment was worse than expected. Members of the Federal Open Market Committee meeting have also suggested that the Federal Bank may need to consider increasing its asset purchasing facility if the economy lost momentum. A raft of data is released in the US today including unemployment claims, building permits and Producer Price Index (PPI); furthermore, the Chairman of the Federal Bank is talking, all of which can provide some form of insight in to the world’s largest economy. Call in now for the latest update and the latest news. Elsewhere, stronger than expected retail sales data was released in New Zealand strengthening the New Zealand dollar with the GBP/NZD rate challenging its record low from August 2011 and the EUR/NZD rate reaching a fresh all-time low. The main data released today is the unemployment statistics for Australia. Call in now for the latest update and the latest news. EURO/GBP – 1.2040 US$/GBP – 1.5688 CHF/GBP – 1.4538 CAN$/GBP – 1.5712 AUS$/GBP – 1.4678 ZAR/GBP – 12.2076 JPY/GBP – 123.259 HKD/GBP – 12.1646 NZD/GBP – 1.8945 SEK/GBP – 10.5664 AED/GBP – 5.7589 US$/EURO – 1.3024 INR/GBP – 77.43