Sterling awaits BoE minutes
The minutes from the Bank of England’s meeting in December at 9.30am (London time) will be the highlight of the trading session today, though as Alastair McCaig stated the market is not expecting any change to the voting breakdown. Out of the nine members on the monetary policy committee, two are anticipated to be in favour of voting for an interest rate rise, and the remaining seven will vote to hold steady. The two hawks on the Monetary Policy Committee have been further isolated by inflation falling to a 14-year low in the UK, but the figures were not so bad as to warrant a change of vote.
The pullback in the US dollar, due to profit taking, has brought about a deceleration of the [currencies:GBPUSD:GBP/USD]]’s decline, but the downward bias still holds. Resistance is still held by $1.52, and if it continues the downside support at $1.51 will be brought into play. If the $1.52 level is breeched to the upside it will consequently act as support, and the $1.5260 region will be the target.