Yesterday we saw Mervyn King give a rather daming speech about the Eurozone. In his speech he said that UK banks should strengthen their balance sheets to help protect themselves from the increased threat of a break-down in the Eurozone and mentioned that Britain is working on a number of “contingency plans” as it appears European leaders are struggling to contain the debt issue from spreading. King made it clear that he felt the biggest threat to the UK’s financial stability was the European crisis. This Thursday sees the announcement of the Bank of England’s latest interest rate decision and with the recent downgrade in growth forecast it will be interesting to see whether the Central Bank decide to announce further Quantatitive Easing (QE). QE is used by Central Banks to help boost an economy but can also have a detrimental effect on Sterling.
In America today we see the non-farm payroll figures released. These figures look at employment levels excluding the seasonally affected agriculture industry and has historically been a major market mover. So, if you need to buy US Dollars please ensure you get in contact with one of our experienced currency brokers today on 0800 3285884.