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Rate cut in UK whilst Dollar has a mixed day

Productivity Jumped to 3.2% above its expected 1.4% prediction.  The Dollar broke through the 90 Yen barrier as stocks in the US rallied, which recovered its losses from the start of the year.  Due out today is the important Non-Farm Payrolls which is expected at -525k, which brings the unemployment rate to 7.5%.

The Euro weakened as German Industrial Orders came in weak.  Trichet also gave very dovish comments on the back of their rates decision which was kept on hold at 2%.  He did mention that rate cuts were being considered in the future and also that the strong Euro is affecting their exports. Industrial fell -6.9% from its -2.5% forecast. Due out today is the German Industrial Output forecast to be better than previous.

The BoE put the interest rates down to a record 1.0% which saw the Sterling strengthen across the board. There was also great news from Halifax House Price index which rose for the first time in 12 months by 1.9% m/m.  The EUR/GBP hit lows of 0.8750 and Sterling jumped 5 figures against the JPY, also GBP/USD traded between the 1.4368 and high of 1.4703.

Due out today is the Industrial Output expected to come in at -1.2%, January PPI Input Costs expected to be better than its previous result of -2% coming in at 0.5%.