EUR

Manufacturing output across Europe came in broadly better
than expected. In Spain, Germany and in the Eurozone as a collective the sector
continued to expand albeit at a slower pace than in January. The Euro
strengthened very marginally following the data.

GBP

EUR

Manufacturing output across Europe came in broadly better
than expected. In Spain, Germany and in the Eurozone as a collective the sector
continued to expand albeit at a slower pace than in January. The Euro
strengthened very marginally following the data.

GBP

UK manufacturing output also came in better than expected
and continued to expand throughout February, with employment in the sector at
its highest level in 33 months. As well as this, mortgage approvals and loans
rose to 76,947 for the month of January, the highest in 6 years.

USD

The US has started to see a decent run of economic data
following the dreadful weather the nation experienced in December and January.

Consumer spending, which makes up two thirds of economic
output in the US, rose to 0.4% in January with personal income in the US rising
to 0.3%.

As well as this Markit manufacturing PMI and ISM
manufacturing PMI both showed big gains in February showing that the
manufacturing sector is continuing to expand.

The data adds to the argument that the Federal Reserve will
continue to taper its quantitative easing program at US$10bn per month and as a
result the US dollar picked up strength from late afternoon through to early
evening yesterday.

Today

This morning sterling gains had a set back with UK
construction output falling slightly in February from January. The decline in
output was mainly due to flooding that hits parts of the UK which hit efforts
to build new homes. House building growth fell to a four month low.

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