Currency watch: trade levels sneak back up

The Bank of England announced this week that it is holding interest rates and maintaining the level of QE at current levels of £200 billion.

Meanwhile trade levels have climbed back up to almost pre-recession levels. This could be down to imports of erratic goods such as oil, of which there was an unusual surplus, so we have to be aware that if imports return to previous patterns the deficit could widen.
 
Halifax house prices are down in the UK steeply from 1.8% to -0.1%, and the US is also having housing issues with mortgage applications recovering yesterday from a decline of -16.5% to a slightly less alarming figure of -0.9%. Nevertheless it is still bottoms up.
 
The eurozone nations are still bickering amongst themselves this week, with the discussion of how to help the debt crisis causing friction.

Germany has stated it does not want a Euro-wide bond or to raise the level of the rescue package, but it might have to compromise on the latter to make other euro members happy.

Jeremy Cook, chief economist at World First, 10.12.2010