The British pound appreciated further vis-à-vis the U.S. dollar today as cable tested offers around the US$ 1.6420 level and was supported around the $1.6240 level. Sterling's upside was limited by comments from Bank of England Monetary Policy Committee member Posen who this weekend said the central bank may potentially increase the size of its quantitative easing program. Last week, sterling was bid sharply higher on speculation the BoE's quantitative easing program would be paused at ?175 billion in size. BoE's new quarterly inflation forecasts will be known to policymakers at their November MPC meeting. Data released in the U.K. overnight saw Rightmove October house prices climb 2.8% m/m and 0.2% y/y. Also, the U.K. ITEM Club upgraded its 2010 growth forecast to 1% from 0.5%. Cable bids are cited around the US$ 1.6170 level. The euro moved higher vis-à-vis the British pound as the single currency tested offers around the ?0.9190 level and was supported around the ?0.9095 level.
Join the Discussion