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By James Lovick

As far as sterling exchange rates are concerned more doom and gloom has come from the National Institute of Economic and Social Research predicting that it could be 5 years before the UK economy recovers to last year’s levels. Combined with poor unemployment figures it is likely to keep sterling euro rates on the back foot. UK retail sales are out this morning at 09.30 which could create some volatility for the at present sliding pound. If you have currency transfers then this could give some direction for sterling this morning.

By Cameron Ellis

The U.S Dollar rose against most other major currencies Tuesday, concerns have been that policy-makers won’t act decisively to head off inflation spawned by efforts to counter the credit crisis.
The U.S. Dollar rebounded while U.S. stocks retreated yesterday after initial gains were overshadowed by cautious outlooks on the economy.
Traders should be paying close attention to today’s announcement regarding crude oil inventories report as it has the potential to boost the USD in the short-term

By Chris Sheppard

Spot FX trading volumes look to have declined in 2009 from their peak in 2008, and suggest a return to more normal levels.  The FX trading landscape has been changing over recent months with the most noticeable impact appearing to come from banks which have less flow business.

It appears that ongoing improvements to the network infrastructure and additional features to their systems may help to improve functionality for manual traders in the FX market.

By Laurina Reddington

With the rising death toll of British Soldiers in Afghanistan and helicopter shortages being the blame, it looks like the government are set to increase and upgrade the rescue equipment, as well they should. However, these essential plans, along with the damage of war in general, may lead to the decline of sterling as billions of pounds are taken out of the British Economy. Therefore it may seem a worthwhile investment to look toward forward contract for sterling currency exchanges.

By Colm Gilhooly

With the recent shocks over the UK national debt figures, rising unemployment, and the Bank of England’s quantitative easing policies this mornings Bank of England Minutes will provide an interesting pre-cursor to what the Monetary Policy Committee are likely to do at their next meeting in August.  Sterling actually rallied towards the begining of this month following the decision not to extend the quantitative easing policy (crudely put as printing money) by the expected £25bn, however recent comments by MPC members such as Kate Barker have suggested the policy will continue in August, and as such have dragged down exchange rates for the Pound.

Following the release of the Minutes, the Pound bounced back a touch against the Euro and the Dollar as the currency markets received the news that all 9 members of the MPC voted to keep the policy of QE on hold suggesting a wait and see approach.  With a lot of quarterly data due out in August the next meeting on the 6th August could be key for the health of Sterling- “to extend, or not to extend: that is the question:”- well at least it is if you are interested in currency rates.