With more pressing concern regarding the hostage crisis in Algeria, David Cameron has decided to postpone his long-awaited speech on Britain’s relationship with the European Union.

In excerpts released by his office, the prime minister was planning on delivering a warning that Britain could head towards an exit unless powers are handed back from the EU. The speech will be delivered once the hostage crisis has ended. Sterling has continued to fall on the back of this in early morning trade.

With more pressing concern regarding the hostage crisis in Algeria, David Cameron has decided to postpone his long-awaited speech on Britain’s relationship with the European Union.

In excerpts released by his office, the prime minister was planning on delivering a warning that Britain could head towards an exit unless powers are handed back from the EU. The speech will be delivered once the hostage crisis has ended. Sterling has continued to fall on the back of this in early morning trade.

A risk on stance was taken yesterday as the euro gained against all 16 of its major peers as borrowing costs on Spanish government bonds reduced following successful bond auctions. Data from the US, showing a drop in jobless claims and a rise in new home builds, also cheered markets and enticed risk taking investors. The euro is currently at a nine month high against the pound and approaching a ten month high against the US dollar.

Overnight we saw Chinese economic growth accelerate for the first time in two years with which also seems to have added to the risk-on stance in the markets

With UK retail sales figures due for release at 9.30am, investors will turn their attentions instead to the raw data, to get a better gauge of the lagging UK economy.

Key Announcements:

9.30 am – UK – UK Retails Sales: Expected to rise to 1.1%.

14.55 pm – US – Reuters/ Michigan Consumer Sentiment Index (Jan): Previous figure was 72.9