USD/GBP Rate & Comments for 23rd January 2012
US$/GBP – 1.5532
Will be an interesting week for sterling as the minutes of the last Bank of England meeting and economic growth data for the final quarter of 2011 are both released on Wednesday. The market will be very interested to see the BoE views on their programme of quantitative easing. The last increase to £375 billion will be used up by early February and given the expected poor economic growth for the final quarter of 2011 the market expectation is for further assistance. Quantitative easing is usually negative for sterling.
This week we have the Federal Reserve meeting. Detailed projections will be released regarding their thoughts on the US economy and its outlook for growth, employment and inflation. Interest rates in the US are not going to go up any time soon but the US economy does seem to be moving forward and at a higher rate of growth than that being experience in Europe. So although the US$ lost a bit of ground last week it should stay reasonably strong.
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