GBP Trades Higher Ahead of Key Data

While the EUR/GBP was down 0.08 percent to trade at 0.8237 during the Asian trading session, GBP/USD was up 0.05 percent to hit 1.5933.

Any low vote by the BoE’s Monetary Policy Committee (MPC) members in favour of further stimulus could be a positive for the GBP. Recent uptick in the UK economic data has lessened the expectations for further quantitative easing (QE) by BoE.

Analysts believe that UK economy is on the path to post a positive gross domestic product (GDP) growth in the first quarter this year, after contracting by 0.3 percent in the fourth quarter last year.

The UK unemployment data scheduled for today also holds key for the Sterling. Markets expect the jobless rate to remain unchanged at 8.4 percent and claimant count to increase by 7,000 in March.

However, the euro was steady against the U.S. dollar buoyed by the successful Spanish short-term government bonds auction on Tuesday, despite a spike in borrowing costs.