Daily Insight

The Euro is slightly firmer against sterling this morning after news of the EU budget deal is digested. Briatain made concessions that are seen as sterling negative, hence te GBPEUR rate being down 40 pips today. An MPC member (Charles Bean) also hinted in a Sunday Times interview at an early 2006 rate cut. The vote of last week's MPC meeting will be released on Wednesday at 09:30, so this could impact sterling if its shown that any of the nine member panel voted for a cut at this month's meeting.

The Aussy and New Zealand dollars continued to fall last week, after comments by an NZ bank governor saying that the currency was overvalued. A strong currency is not always desirable, as it can make exports look expensive to the outside world

The Japanese Yen has rallied massively over last week on hints that the Bank of Japan may raise interest rates soon, from the zero percent they have been for several years.

GBPEUR - Support 1.4700 then 1.4650
Resistance 1.4750 then 1.4800

GBPUSD - Support 1.7610 then 1.7500
Resistance 1.7745 then 1.7800