Sterling at risk from today’s BoE decision | Smart Daily Currency Note
GBP/USD – 1.4992
Sterling struggled yesterday, losing ground against most of its major peers, giving back its recent gains to head back down towards the 1.50 mark against the US dollar. The driving force behind this decline was speculation that the Bank of England Monetary Policy Committee would today increase its quantitative easing programme in an effort to boost the recovery. While the markets are full of chatter of a potential change, especially after 3 members voted in favour last month, it would be a surprise according to many, including major banks – implying that any increase would see a big reaction in exchange rates. All will be revealed at noon so call in for an update and the very latest rates.
The US dollar enjoyed a strong day, making gains across the board after an influential employment release came in much better than expected. Notably, the US dollar made gains for the first time in three days against the euro to push back down below the 1.30 mark. Key releases this morning include trade deficit figures and the weekly unemployment figures both of which are forecast positively, which ought support continued dollar strength. That said, its likely to be a day for reaction with central bank announcements elsewhere. Get in touch now for the latest news and prices.