Market Report

Today we see the release of UK retail sales for March, which is expected to show more gains. This should in theory help to keep GBP/EUR and GBP/USD at the rates we are currently seeing.

Importantly, we hear from the FED's Mishkin who will be speaking on his views of the Economic outlook. This may give us clues as to the next interest rate movement in the US.

The cricket world cup has seen Duncan Fletcher and Brian Lara quit their respective jobs, both had failed to fulfil their countries high expectations.

Have a nice weekend

DE

The Bank of England voted 7-2 to keep interest rates on hold in April, it was announced yesterday. In my opinion we are more likely to see a vote that reflects the England batting performance 5-4 to put interest rates up next month!

In sport, West Ham look doomed to relegation with Chelsea keeping the heat on Manchester United at the top. The coming weeks will be interesting.

DE

What a time to be trading, the Dollar is as weak as an English batsman going through the 2.00 with ease yesterday after inflation hit a ten year high in the U.K and poor CPI figure's from the States. Even though the Dollar seems to be taking a pasting at the moment beware! The last time this happened the Dollar strengthened dramatically you have been warned.Uk inflation has reached 3.1% for the first time since the Bank of England took control and means an open letter explaining why, has to be sent to Gordon Brown, Bad news for any of us with a mortgage. The Aussie and the Kiwi are as strong as their cricket teams at the moment.

Oh well, England are on their way home after a dismal display against the South Africans how many times are we going to say that? Football saw Man.Utd stroll to another home victory over Sheff. Utd and with Chelsea facing the mighty hammers tonight the title could be over by the weekend, sorry just dreaming there the gap looks certain to be back to three points tonight and the hammers look doomed.

Have a great day.

VC

This morning sees the release of CPI figures from the UK, which we are looking to see a monthly rise of 0.3%. If this comes out slightly higher than expected we will see the rate of targeted inflation rise to 3%, which we know is the figure at which a letter has to be written to the Chancellor explaining why. In turn this will increase the likelihood of further interest rate hikes.

CPI is also being released in the US at 12:30, which may be interesting considering the vulnerability of the Dollar.

Today also sees the very important game at the Cricket world cup, between England and South Africa. If England lose, they will be out of the world cup. At least we can guarantee that it wont be thanks to a penalty shoot out as is the normal way England lose in a world cup!

DE

MARKET NEWS
The U.K. pound may drop against the dollar before a report today which will probably show prices of goods leaving factories eased last month, and before minutes of the last Bank of England meeting later this week. The pound climbed last week by the most in three months on carry trades and speculative signs of growth and inflation are quickening and will push interest rates higher.

Federal Reserve policy makers last month questioned their forecast that inflation would recede, according to minutes of the bank's March meeting released last week, reviving the prospect of interest-rate increases.

GENERAL NEWS
The expected big two made it to the first cup final back at Wembley with an easy victory for the mighty reds and a hard fought win for Chelsea. The relegation scrap is really hotting up with Sheffield Utd gaining a valuable win over my beloved West Ham who will now find it very difficult to avoid the drop. Charlton must feel very hard done by after a late late winner from Everton. With five games to go I believe there may be a few more twists and turns left with Wigan and Fulham still nervously looking over their shoulders.

VC

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