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Forex pairs in this Article » GBP/USD, EUR/GBP (London) - EUR/GBP has fallen from earlier highs ahead of today's UK retain numbers.

Slight UK retail rise expected

This morning’s UK retail figures are expected to see a 0.4 percent month-on-month rise, up 2.6 percent for the year while retail sales ex-fuel are expected to decelerate slightly to 0.3 percent from 0.4 percent in November.

We will also have the first speech of 2014 by a Bank of England MPC member when Ben Broadbent speaking at the London School of Economics at 12:15 GMT on “The Balance of Growth.” Following the UK’s first on-target inflation print since November 2009, the speech will be scrutinised for clues towards the BoE’s forward guidance policies amid some speculation that Mark Carney may move to lower the threshold below which the central bank will consider hiking rates. It is currently set at 7.0 percent but there has been some chatter that he may let unemployment declines run further, lowering the threshold to 6.5 percent.

German courts to rule on OMTs

Today sees a light day of European economic data, however there could be some cause for disruption today when the German Federal Constitutional Court is due to announce its ruling on the constitutionality of the European Central Bank’s outright monetary transactions. The transactions were instigated by the ECB in 2012 in a move to draw down European bond yields – with the ECB buying up medium-dated government bonds of troubled Eurozone member state in the secondary market,

EUR/GBP is currently trading at GBP0.8334, falling from an early high of GBP0.8340. The pair remains up 0.9 percent on an opening of GBP0.8327.
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