Britain is certainly located in Europe!

Bank of England and European Central Bank both decided to leave interest rates unchanged today. Since there was no statement from BoE, it was just up to ECB's Trichet to shape markets' view on the prospect for the economy and monetary policy in Europe.

Deteriorated consumer confidence, decline in investment, rising unemployment, and the possibility of contraction in the GDP are not hidden to the market and recent depreciation of European currencies is certainly its reaction to the data. However, today's comments worked as a catalyst and triggered another round of selling Euro, Swiss Franc, and not surprisingly the British Pound. (see euro's reaction)