Investors reversed their carry trades bets today after yesterday's gain in stocks prompted them into indulging carry trades, especially the USD/JPY pair, which rose back to the 100 levels before dropping today back to the 98 levels.

While today the BOE released their Minutes for their last meeting in which they decided to keep interest rates unchanged at 5.25 percent, the vote was not unanimous as two members opposed the decision and were calling for a quarter percentage point cut…

Though the MPC members disagreed about the extent of damage to economic growth, but they agreed that the balance of risks had not changed significantly to alter the banks' decision, citing downside risks to growth remain but upside risks to inflation is limiting the banks options over cutting rates.

Meanwhile the Office for national Statistics reported today that the Jobless Claims change dropped only by 2,800 to 793,500 in February below median estimates of a 5,000 drop. While the Claimant Count Rate came unchanged in February at 2.5% inline with median estimates, as for the ILO Unemployment rate it also remained unchanged in January at 5.2%.

The BOE wanted to get their massage, that so far they are not in deep trouble as their American counterparts, the U.S economy is seen to have sunk already in recession, while the situation so far in the U.K remains relatively much better and the BOE seem to be on top of things! So let's just hope their assessment was accurate because the financial markets can't afford to have another tragedy!!!