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Sterling has a good day ahead of rate decision

The BOE and government may look elsewhere in future to try to stimulate the economy rather than cutting the interest rate.  A 0.5% cut looks as if it has already been priced into the market and once announced it will add pressure to the ECB to act on their rates.  They are due to announce today as well but are predicted to not move this time around and wait until March before next cut.

Lower than expected data out of the Eurozone and the downgrading of Russia hit the single currency and the Yen once again was one of the main benefactors. Yen also saw gains against the Aussie dollar after the prevois days rate cut in Australia and the release of their stimulus package. 

The RBA will release the minutes of their last rate meeting after we have gone home this evening. Mixed  data out of the states assisted the dollar against the Euro but it lost ground against Sterling and the Yen. Cable reached the 1.45 level at one point but was back trading below 1.44 this morning.

Figures also out today are the German industrial numbers due at 11 UK time which is again due to show a negative number. In the US this afternoon we have jobless claims, durable goods and factory orders due all are expected to make pretty grim reading as the US struggles to get out of recession.