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CBI says UK will avoid technical recession

The Confederation of British Industry portrayed a positive sentiment towards the UK's economy yesterday suggesting that the UK would avoid a technical recession.

Currency rates - February 14

EURO/GBP - 1.1951

US$/GBP - 1.5716

CHF/GBP - 1.4443

CAN$/GBP - 1.5741

AUS$/GBP - 1.4716

ZAR/GBP - 12.1588

JPY/GBP - 122.54

HKD/GBP - 12.1912

NZD/GBP - 1.8939

SEK/GBP - 10.5028

AED/GBP - 5.7734

US$/EURO - 1.3152

INR/GBP - 77.46

It suggests it should eliminate the need for further quantitative easing. It suggests the recovery will gain momentum this year which should eliminate the need for more quantitative easing. The economic calendar on Monday was relatively light in Europe as the spotlight remains firmly on the developments in Greece. Violent protests broke out over the weekend as approximately 100'000 people took to the streets. The first of several necessary votes was passed over the weekend with the Greek parliament approving the austerity measures put forward by the prime minister. Greece now needs the Private Sector Investors (PSI) bond swap deal to be agreed and then the EU needs to approve everything before it can secure the new €130 billion bailout. The market will look towards Wednesdays supposed deadline day when the Euro-area finance chiefs will meet to discuss the proposed bailout once more before Euro governments will then hold parliamentary votes.

In the US, The Obama administration sent its $3.8 trillion budget plan to congress yesterday. The budget predicts growth of 2.7% this year and focuses on the importance of creating more jobs and reducing the growing national deficit which has been estimated to reach $1.33 trillion.

Elsewhere, data released yesterday showed that Japanese economy shrank more than expected. This will encourage the Bank of Japan officials to consider reassessing its monetary policy with a statement expected early this morning. In Australia, data released showed that the change in the number of new home loans granted increased more than expected. As well as the news out of Japan, today sees the release of retail sales figures for New Zealand.

Supplied by Nick Ryder of Smart Currency Exchange, the currency partner to Harpers Wine and Spirit who have teamed up with Smart to provide readers with a free bespoke currency service. Go to www.smartcurrencybusiness.com/winespirit for more information or call on 0207 898 0500.