This week there is very little local economic data out until Friday, when in the UK we have the release of GDP figures for the fourth quarter. In the US, consumer confidence is expected to slip after touching 16-month highs in the prior month. The rest of this week's data is forecast to see gains over previous releases. For the eurozone, markets will continue to scan headlines for more public finance scandals across Europe, which are likely to keep a negative cloud hanging over the single currency.

Sterling

Sterling kicked off at almost nine-month lows against the US dollar on the back of the US Federal Reserve announcing they were increasing their discount interest rate. The morning did not improve for sterling as British retail sales fell in the month of January to -1.8 per cent. The cold and snowy weather was being blamed for a fall in the purchase of household goods, fuel and food. And was yet further supportive data reinforcing the view that the Bank of England will look to hold interest rates at their current level for most of the year.

US dollar

The dollar slipped at the beginning of last week as markets were closed yesterday due to President's Day. However it raced to take back losses after upbeat economic data and hawkish FOMC minutes were released by the middle of the week.

Euro

The eurozone sees a plethora of data due for release this week which could help the euro gain against other currencies. France sees CPI and consumer spending numbers while Germany awaits the release of the IFO conditions, climate and expectations surveys. In Italy, consumer releases dominate with confidence, prices and CPI will follow on.