Pound struggles to make headway

The Pound failed to make any headway yesterday morning as commodity currencies weakened slightly as dragged the Pound along. There was also some doubt that the Bank of England policy statement (Thursday) would be hawkish enough to justify market expectations, and the uncertainty curbed trading activity and increased the risk of choppy trading. Sterling dipped close to 1.3600 to the dollar while the Euro held around 1.1764. The dollar made significant gains on commodity currencies and the Euro edged back below 1.1600.

Sterling opens higher this morning, at 1.3630 per dollar, as the markets refrains from selling off further ahead on Thursday’s Bank of England policy decision

Today’s focus is the US Federal Reserve FOMC Meeting where it’s expected that asset purchases will reduce by $15bn per month, starting this month. The market’s attention will be on whether the Fed follows the pack in holding off from raising interest rates.