Despite the PPI numbers making grim reading the input prices put pressure on the upside to inflation and growth looks to be very low if any for the rest of this year in the UK.
Overnight however Sterling has retracted and it will be interesting to see how it trades after the UK Retail sales and CPI figures are released today.
The dollar had a mixed day after strengthening in Far East trading over weekend it lost ground yesterday against nearly all major pairings but has again traded better in the Far East session. The US too have Retail sales figures due today and Mr Bernanke heads a series of speeches from the Fed this afternoon.
The Euro regained some of its recent losses in relatively light trading as part of Europe had a public holiday yesterday. It looks as if the dealers on the world's exchange markets are in for another nervy day of trading.