Italy and Netherlands fall into recession

UK uneployment rose this morning, but by its smallest amount in a year, as official figures showed contraction in Germany with Italy and Holland now in recession.

The Euro has weakened on the back of the disappointing Eurozone GDP figures, with growth in the single currency zone at -0.3% in the fourth quarter of 2011. In addition, the Greek government is yet to clarify exactly how its austerity measures will be implemeted, giving a weaker Euro and better rates for sending Euros abroad, while talks continue today.

The UK unemployment data could have been worse, so sterling has held up, although Bank of England Governer Mervyn King said in his speech this morning that further Quantitative Easing could be on the agenda in the coming months, which does not bode well for the Pound.