What will the Bank of England say?

On a day dominated by weakness surrounding the euro, sterling made strong gains against the single currency. Despite a lack of significant economic releases, a potentially quiet day sprung to life on the back of reports that the European Central Bank (ECB) was considering the purchase of corporate bonds as part of the latest stimulus package to lift the Eurozone out of its slump. Despite holding firm against the US dollar for much of the day, better-than-expected US existing home sales saw sterling lose ground against the dollar late in the afternoon with uncertainty over the future course of action from the UK and US central banks. Sterling has been trading within narrow bounds throughout the start of the week.
Today sees the release of minutes from the latest meeting of the Bank of England’s (BoE) Monetary Policy Committee. With this taking place before the release of inflation data, which has recently been poor, it is unlikely that we will see significant movement without a drastic change in policy from the BoE. Elsewhere, inflation data from the US could ignite more significant movement for sterling against the US dollar.