EUR

In Germany the ZEW index that measures investors’
confidence, decreased slightly and now stands at 61.7, from 62.0 in December.
This figure was also positive for the entire Eurozone coming in at 73.3 for
January higher than December’s figure of 68.3. This helped to provide some
support for the euro early Tuesday morning.

GBP

EUR

In Germany the ZEW index that measures investors’
confidence, decreased slightly and now stands at 61.7, from 62.0 in December.
This figure was also positive for the entire Eurozone coming in at 73.3 for
January higher than December’s figure of 68.3. This helped to provide some
support for the euro early Tuesday morning.

GBP

IMF chief economist Olivier Blanchard has reported that The
UK recovery appears to be sustainable. Blanchard said the IMF had raised its UK
growth forecast to 2.4% for this year, from a previous forecast of 1.9%. The
upgrade is the biggest for a G7 country.

This saw the pound continue to strengthen as stronger growth
will lead to reduced unemployment and increase the likelihood of interest rates
being raised in the UK

He also stated that global growth would pick up to 3.7% in
2014 from 3% last year but warned that there were still plenty of risks for the
global recovery.

The Confederation of British Industry said its index of
industrial order expectations fell to -2 points this month from 12 in December,
and below expectations of a reading of 10. However, the CBI said the volume of
total orders for the next three months rose to 22 from 14, the highest level
since April 2012. New orders in the three months to January saw their strongest
growth in nearly three years.

AUD

The Australian dollar had a welcome boost early this morning
with the final inflation figure for 2013 coming in above expectations at 2.6%
for the year. This figure will dampen expectations of an interest rate rise
given the reserve bank has an inflation target band of between 2% to 4%. 
Reserve Bank Governor Glen Stevens has hinted at lowering interest rate if
required to stimulate the slowing Australian economy.

Today

We have a big day for the pound today after a quiet start to
the week. We have the minutes from BOE interest rate decision where they may
discuss their outlook for forward guidance. Also at the same time the minutes
are released we have the November unemployment rate set to fall to 7.3%.

At midday we have Mortgage applications in the US for the 17^th
of Jan as well as latest interest rate decision in Canada.

Key Announcements:

9.30am – GBP – Bank of England Minutes.

9.30am – GBP – Claimant Count Change (Dec): Expected to
worsen slightly to -35,000.

9.30am – GBP – Unemployment Rate (Dec): Expected to fall to
7.3%.

12.00pm – USD – Mortgage Applications: Previously at 11.9%.

15.00pm – CAD – Bank of Canada Interest Rate Decision.