:: United States Dollar: The greenback finished Tuesday unchanged or marginally higher against most of its major peers, with no major US data releases and market focus still heavily on Europe. GBP/USD lacked direction on the day, selling off to a low of 1.5773 despite a better than expected UK Public Sector Net Borrowing (PSNB) number for January. This figure was certainly good news for the UK government and should have been good news for the pound, but its underperformance was indicative of the wider performance of high beta FX on the day. We have just had the release of the minutes from the last Bank of England MPC meeting and cable has shed a quick 70 points on the basis that more members voted for further QE than expected. GBP/USD will likely continue to take its cue from broad risk sentiment and opens this morning at 1.5700.

- We expect a range today in the GBP/USD rate of 1.5650 to 1.5750

:: Euro: Despite the agreement on the second bailout package for Greece, the single currency didn’t outperform versus its major counterparts on Tuesday. In particular, EUR/USD failed to break above its post-bailout Asian highs of 1.3293 as European investors saw little reason to drive the euro higher with so much for Greece still to do in order to keep its head above water. The 17-nation currency performed better on the crosses, particularly against the pound, with EUR/GBP grinding higher from the outset of trading yesterday and touching a high of 0.8402 (1.1901). The performance of EUR/GBP was a little surprising given the better than expected UK PSNB number for January, but sterling’s performance on the day was well in line with its other risky FX counterparts. There will be some focus on Eurozone PMI data today, but with so many details still to be addressed with regard to Greece it is likely that the euro will continue to trade within its recent ranges, possibly with a slightly negative bias given some of the headlines overnight. GBP/EUR opens this morning at 1.1866.

- We expect a range today in the GBP/EUR rate of 1.1820 to 1.1950

:: Aussie and Kiwi Dollars: The commodity bloc fell against the USD yesterday, despite the outperformance of equities. Both AUD/USD and NZD/USD fell from their post bailout announcement Asian highs, moving lower for the whole day as risk sentiment soured and large scale demand in the EUR/antipodean crosses played its part in the weakness. The AUD likely also suffered on the back of the RBA minutes, which did indicate a chance that rates could be cut if demand conditions take a turn for the worse. On that basis GBP/AUD made some decent gains, touching a high of 1.4840 but GBP/NZD was unable to share in the spoils, remaining mired in a 1.8880-1.8960 range. Overnight the AUD has been volatile, spiking to a low of 1.0611 before bouncing higher on a better than expected Chinese PMI release. GBP/AUD and GBP/NZD open this morning at 1.4780 and 1.8892 respectively.

- We expect a range today in the GBP/AUD rate of 1.4690 to 1.4870

- We expect a range today in the GBP/NZD rate of 1.8780 to 1.9060

:: Data Releases:

• AUD: No data due for release
• EUR: Eurozone PMI, Eurozone Industrial New Orders
• GBP: BoE Minutes
• NZD: No data due for release
• USD: Existing Home Sales