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UK Claimant Count and MPC minutes released

The market expected the Inflation figures to be high but maybe not as high as we saw. CPI came in at 4.5% against market expectations of 4.2%. This increase was put down to a rise in transport costs, particularly the Easter rises seen in air and sea fares, and alcohol and tobacco. Initially the pound reacted positively to these figures and we quickly saw a jump to around the 1.6300 level in cable and GbpEur moved to just over the 1.1500 area. However these gains were short lived and the Pound soon moved back to the days starting levels. Core inflation ,which rules out erratic items, like energy and food, came in at 3.7% against the previous months 3.2%. This is the highest figure seen since the data started being collected this way in 1997.   Today sees Claimant Count figures and also the MPC Minutes from their last meeting will be released.                         
DATA : 09.30 Claimant Count Change and MPC Meeting Minutes    

Now that Portugal are sorted out ( for the time being at least ) attention once again turned to Greece. The mar¬ket seems rather confused as to what is actually being done to sort out the situation but  all that we know is that something needs to be done. The talk now seems to be of new loans worth potentially tens of billions of Euros but as of yet this has not been decided. Their total debt is put somewhere around the €330 billion area. How¬ever the Greek Prime Minister was rather annoyed yesterday as some of his fellow European partners had ‘dared ‘ suggest that they might consider selling off one of their Mediterranean Islands or even a monument from antiquity in order to keep the wolves from the door. The cheek of it!!!! There was also a suggestion that more time might be given to Greece to pay off their debt but this would only see them on the hook of its EU part¬ners and the IMF into at least the next decade.
Data:  No major data today.    

The dollar had another poor day ( for a third day in a row ) against the Euro yesterday. All this appears to be on the back of market perceptions as to where Interest rates will go in both Europe and the US. Whilst the market fully expects Euroland  to increase sooner rather than  later it is all very quiet over in the US and certainly short term this is not helping. It starts today sitting around the 1.4250 level against yesterdays starting price  of 1.4170. Market attention for the day turns to the FOMC Meeting Minutes which the market will digest to see if they can get an inkling of future monetary policy.
DATA : 13.30 FOMC Meeting Minutes    
The Japanese Yen could well be in for a rocky ride after comments out of the BOJ which stated that the econ¬omy is in a ‘severe’ state.    



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GBP/USD 1.6250
GBP/EUR 1.1390
EUR/USD 1.4270
GBP/JPY 132..00


GBP/NZD 2.0610
GBP/ZAR 11.2700


GBP/CAD 1.5780
GBP/SGD 2.0160


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