ECB may explain QE plans in more detail

Today's Highlights

Sterling helped by Strong Service sector sentiment

No change expected from BOE

ECB may explain QE plans in more detail

FX Market Overview

The Pound had another good day at the office after a solid service sector index from the Purchasing Managers survey. Businesses appear confident in current and future conditions; no wonder the Pound is on a march.

The US Beige Book, a regional view of the US economy, pointed to steady growth and marginal inflation. Neither conclusion will change the pace of change as far as US interest rates are concerned. This afternoon's US productivity data will be closely watched for signs of overcapacity and the factory orders data is a very well watched bellwether for US economic strength. Tomorrow's employment report is a stronger signal but another slowdown in job creation is the most likely scenario. Be ready for a bounce if you are a dollar buyer.

Overnight we heard that Australian retail sales posted minimal growth in January. That was largely in line with expectations but the Australian Dollar has strengthened on the news. That probably correlates with the upbeat messages being put out by various analysts who believe further retail growth is likely.

Today's main news items are the announcements from the European Central Bank and the Bank of England. We don't expect any change nor any detail from the BOE, as is their normal practice. However, the ECB is very likely to reveal more detail of its Quantitative easing program and that might be enough to underpin the embattled euro for the time being. I suspect we may see Euro strength in the lead up to the press conference at 13.30 GMT but the direction in the wake of that announcement all hangs on the detail and how well that is received in the market.

Aside from this, it may be worth men on the London underground network dressing a little smarter in future. A web blog in China called, Tube Crush, consists of people posting candid shots of attractive male British commuters which other subscribers can comment on. I suspect if it were pictures of attractive women, there would be a bit of a furore but one picture got 100,000 'likes' and comments about how some of the viewers wanted to 'take the tube every day'. If only they knew the reality of the London Underground. I'm getting a stunt-commuter so I can always look my best.