Today sees the announcement of both the UK and Eurozone interest rate decisions, one of the most eagerly anticipated data sets this month. The rumours in the market are that in the UK we could see further Quantitative Easing (QE) announced following the news that UK inflation has fallen last month and that the UK economy had shrunk in the last quarter of 2011 by 0.2%. Over the last few years when we have seen QE announced it has led to Sterling weakness, in some cases the movement has been more dramatic than others and with analysts split over whether the Bank of England will announce QE or not there could be room for movement today. The announcement in the UK is due for midday so if you have a currency transfer to make please speak to us this morning to discuss your options.

At 12:45pm today we will see the Eurozone interest rate decision. Since he became the President of the European Central Bank (ECB) Mario Draghi has cut interest rates twice and they are now at 1% and there have been some rumours that there is room for another interest rate cut. However, with the Greek coalition government failing again to come to an agreement and a new deadline imposed by the ECB to have the agreement finalised and signed off by the 15th February giving the country less than a week to overcome all the hurdles that have so far delayed this agreement being finalised.

If you need to transfer money abroad then it is important to stay in contact with your currency broker here at Foreign Currency Direct plc so they can keep you inform of all the market movement and the options available to you. Call us today on 0800 328 5884 or from abroad +44 1494 725353 or email info@currencies.co.uk