Sterling had a mixed day yesterday, falling in advance of the release of the Consumer Price Index (CPI), an indicator of UK inflation. This data showed that inflation stood at 1.9% throughout the past year, settling below the 2.0% target set by the Bank of England (BoE) for the first time since 2009, justifying the BoE’s decision recent decision to use a range of indicators to assess policy on interest rates as opposed to just unemployment data. Sterling has weakened by over a cent from its recent highs against the euro and the US dollar which it hit in the middle of last week.
Today sees the release of the minutes from the last Monetary Policy Committee meeting of the BoE which will detail how the members voted on interest rates and their programme of quantitative easing. Unanimous votes are expected so anything different will be a great surprise. We will also have a raft of unemployment figures which could influence sterling if they are materially different from expectations.
Wondering when to buy or sell sterling? Call your trader now for live rates, guidance and currency-buying strategies.