The Sterling performed well on Wednesday as it continued to sail smoothly in the midst of austerity ‘merriment’ and better EUR centric sentiment (read stability). There were no releases of significant data from the U.K. yesterday, but this changes today as the BoE holds their monetary policy meeting and the release of the Halifax HPI and Manufacturing Production numbers are all on schedule. While the euphoria of the U.K. government’s tough austerity measures has buoyed the GBP, there remains a dubious economic cloud lurking. Today’s data could be enough to alter sentiment if the reports prove negative. The BoE is expected to stay steady regarding its monetary policy. The Sterling has garnered favorable trading the past couple of weeks and it will provide opportunities to test its range again today.
Written by bforex.com
