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With UK GDP coming in above expectations in Q3 and speeches from MPC members this week giving little away, views that the Committee may be poised to launch another round of QE at next week’s meeting have receded…read more
The G20 group also agreed to “refrain from competitive devaluation of currencies
Trading is most likely to be very quiet until we start hearing noises from the G20 meeting. Sterling looks like it will be under pressure from both the Euro and the USD for the remainder of the day.
Sterling is also under pressure versus the dollar and euro over yesterday’s trading session and overnight as markets reacted to the dovish tone of the minutes of the last Bank of England policy meeting.
The minutes of October’s MPC meeting, released a few minutes ago, doesn’t exactly make the picture any clearer. It seems there was a 3 way split of sorts, with Posen as expected voting for an additional £50bn of QE, and Sentance, as expected, voting for a 0.25% rate rise.
The dollar has, after yet another poor performing week, pulled back a cent against the Euro in trading overnight and into this morning. There was some disappointment on Friday that Federal Reserve Chairman Bernanke didn’t more explicitly allude to the possible size of QE that the FOMC may relaunch, though that was probably always unlikely, [...]
Sterling has been struggling these last few weeks and hit a five month low against the Euro yesterday on fresh fears that the UK economy could be in for another slump…read more
Tomorrow we have a bit more data out but nothing for the struggling Pound so sterling may need to rely on weakness in other currencies to make any gains…read more
Today, the UK calendar has already got off to a poor start this morning, with the Nationwide Consumer Confidence survey showing the weakest level for 18-months…read more
The dollar has managed to claw back some ground versus the euro, with the single currency struggling to hold a break through the $1.40 level. There were reports that automatic sell orders were also pulling the euro back towards $1.38. Speculative traders are believed to have become short dollars following the recent sell off, which [...]