By Tom Higham

News released this morning shows that enquiries for house purchases increased for the seventh month in a row and some analysts believe this could result in UK house prices stabilising. Due to this we have seen the Pound gain nearly a cent against the US dollar and a third of a cent against the Euro.

However, while this is very positive for the pound news also came out from the banking sector that Lloyds TSB will be closing all the Cheltenham and Gloucester branches with up to 1500 jobs on the line. This could be further bad news for the UK economy and may result in the recent Sterling gains being wiped out. So with political instability and further job losses it is hard to predict where the currency market will go but what we do know the coming weeks are likely to be very volatile!