The British Pound climbed 1.8% versus the Dollar on Thursday, as the cross jumped to $1.6398 from $1.5975 late Wednesday. The Pound also jumped versus the EUR, sending the shared currency down 1.8% by yesterday's close.
The Pound experienced its first weekly gain in a month versus the USD on optimism that the Bank of England (BOE) will suspend the asset purchases program, after Paul Fisher, an official with the Bank of England, signaled satisfaction with the impact of the central bank's money creating quantitative easing program. Since this program is essentially flooding the market with Pound Sterling by printing currency, the program has weighed on the GBP. The anticipated ceasing of the program in the coming months is likely to boost demand for the Pound.
The EUR dipped against the Dollar on Thursday, despite speculations that the European Central Bank (ECB) officials will signal today that the bank may begin withdrawing unconventional policy measures, which will boost demand for higher-yielding assets. With Trade Balance data being the only release expected from the Euro-Zone today at 09:00 GMT, the EUR's movements will likely be affected by the data releases coming from the U.S.