Yesterday in the UK we saw another reason to potentially expect more quantitative easing from the Bank of England as the shop price index data came in worse than expected. The anticipation of a further round of quantitative easing later on today weighed heavily on sterling as it weakened across board. It is still highly anticipated that a 50 billion pound increase in the Bank of England’s asset purchases will be announced. Interest rates are expected to remain at 0.5%. The yield on 10 year Government bonds also reached a two month high yesterday. In more positive news, Standard and Poor’s (one of the three main credit rating agencies) said that the UK has benefited from a floating exchange rate suggesting we have faired better thought the global economic crisis by not being part of the euro. Manufacturing data in the UK is released this morning; but, the main focus will remain on Greece and the Bank of England’s decision on its asset purchase program and official bank rate. Call in now for the latest update and the latest news. 

Little data was released in the US with the worlds focus remaining on Greece. One of the members of the Federal bank was speaking where amongst many things stated that the US doesn’t need to raise tax or to make drastic cuts at present. He also reiterated some of The Chairman of the Federal Bank comments from Tuesday stating that the economy has performed "pretty" well and that job growth was good for the time being; however, he also mentioned that the US is "clearly on unsustainable path" of deficits and that the fiscal issue is the "biggest" long-term challenge that the US faces. Standard and Poor’s also stated that the US has a one-in-three chance of another downgrade due to the he government’s failure to agree on a path to reduce its deficit. Out today in the US see’s the release of yet more unemployment data which the market hopes will replicate the positive unemployment data out last Friday. Call in now for the latest update and the latest news.