Due to quantitative Easing (QE), rising house prices and Manufacturers reports that there is further growth in the UK market,  confidence and positive thoughts as to whether the UK is on the up have been raised. 

QE pumped into the economy by Bank of England (BoE) to the sum of £50 Billion has surely helped. The UK shouldn’t however get used to this, as Mervyn King is playing down any other cash boosts. 

Due to quantitative Easing (QE), rising house prices and Manufacturers reports that there is further growth in the UK market,  confidence and positive thoughts as to whether the UK is on the up have been raised. 

QE pumped into the economy by Bank of England (BoE) to the sum of £50 Billion has surely helped. The UK shouldn’t however get used to this, as Mervyn King is playing down any other cash boosts. 

GBP will see gains against its counterparts, especially with the trouble continuing in the Eurozone and as US factories are seeing a sluggish result, along with US bonds being down. US Treasury prices fell yesterday and further QE is proposed, showing further doubts in the normally safe haven. Reports suggest that there needs to be a reassessment of where the US Fed is going. 

International Monetary Fund (IMF) are concerned that the global economy’s growth is being hindered by complications in the euro, which was highlighted very recently in a report prepared for the G20 countries. The major concern is that the world economy will slow to 3.3% down from 3.8% last year. 

The euro started to strengthen versus the USD & GBP over the last couple of days and there is further turmoil with Greece as they battle to maintain austerity measures even though a second bailout is due to be approved. The euro will potentially see lows today as trading comes to a close for the weekend.

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