November 5, 2009 06:41 ET:
Markets await the BoE decision at noon GMT. A decision to raise QE by 25 bln may not be seen enough by the markets and could keep GBP stable after an initial decline. An increase in QE of 50 bln would be a clear negative for GBP. Traders must watch yields on 10 year guilts (UK 10-year) for an impact on FX. If yields fall by at least 10 bps from their current 3.76%, then expect GBPUSD to sustain renewed pressure, targeting $1.6460s. ECB unlikely to move the market at 12:45 GMT, but watch the press conference with JC Trichet and US jobless claims at 13:30. CAD remains amid the biggest losers in FX ahead of tomorrows CAN job figures and BoC worries with the strong CAD. USDCAD eyeing 1.0920, eyeing 1.0680, followed by 1.0720. CADJPY attempts to stabilzie abve 85 but any fresh risk aversion seen calling up 84.20. Catch Ashraf on CNBC Europe at 12:05 GMT after the BoE announcement.