Good morning,

Pound pushed higher yesterday against the Euro following euro data but did manage to lose all gains by the end of the day. The US dollar continues to benefit from all global economic problems due to its safe haven status.

Yesterday evening Bank of England policy maker Martin Weale said weak productivity growth may mean higher interest rates are needed in the short term to prevent demand putting a squeeze on the economy and boosting inflationary pressures.

“Persistently slower productivity growth would have two implications for interest rates,” Weale said in London yesterday. “In the short term, interest rates would need to be higher in order to prevent demand running ahead of supply. But over the medium term, interest rates may remain lower than they were before the crisis, reflecting weaker underlying growth.”

The focus for the UK today turns to the industrial production data for October. Markets are expecting both the manufacturing and Industrial production figures for October to post above consensus rises of 0.4%.

It is a fairly quiet day for the euro exchange rates with the only data already released this morning being the trade balance figures. Later this morning the ECB’s Makuch will hold a press conference at 11.00 GMT in Bratislava.

Australian business sentiment dropped to the lowest level since before last year’s election. Economists are now predicting the central bank will cut interest interest rates twice in 2015. The Aussie dollar has almost touched a 5 year high!

The US session will see the release of some second-tier data, including NFIB small business optimism index for November and the JOLTS report for October.

Best Foreign Exchange Rates Today Online:

GBPEUR 1.2680
GBPUSD 1.5658
EURUSD 1.2347
GBPSEK 11.795
GBPAED 5.7516
GBPAUD 1.8903
EURGBP 0.7884
GBPJPY 187.78
GBPTHB 51.570