The British Pound is awaiting the latest decision out of the Bank of England's MPC on interest rates and Quantitative Easing.
Currently the GBPUSD is down 0.19% while the GBPEUR is up slightly by 0.093%
Today's decision by the MPC is especially significant in that it coincides with the release of an updated inflation forecast.
While many central banks are starting to ponder exit strategies after offering extraordinarily easy monetary conditions amid last year’s global economic crisis, the BOE has scope to move in the opposite direction after a very disappointing third-quarter GDP report.
However the latest data PMI figures on economic activity show that both services and manufacturing have returned to growth.
FX spread betting guidance, from ADVFN:
EURUSD - in the wake of last nights Fed decision the Euro overspilled the 1.4850/60 resistance area, peakin g at 1.4905 before sliding back in Asia. It should find some support around 1.4770/80, while below that the really important level remains 1.4625. While above that the risk of a test of 1.5000 remains.
GBPUSD - the cable almost matched the peaks last week at 1.6600, before dropping back in Asia. As in previous weeks the 1.6440/50 area is a key pivot area. If we get below that we should head back towards the support around 1.6250/60, a break of which would re-target 1.6000 in the near term.
EURGBP - currently back near the 0.9000 pivot after spending most of yesterday re-testing the lows of the last week near 0.8910/20. On the upside we need a break above 0.9070 to stabilise and provoke a re-test of 0.9270, while below 0.8910 targets 0.8860.
USDJPY - subsequently failed at the 91.30 resistance area, peaking at 91.20 and has subsequently slipped back below 90.50 to re-target the lows of last week.
