It was a fairly noneventful day of trading between the US dollar and British pound yesterday.
With little new data coming in and subsequent light trading volume, this pair traded a very narrow 1.6100/1.6160 range. This morning it opened higher, towards the top of yesterday’s range.
Forex Update: US Dollar / British Pound
Of the little data that was released yesterday, much of it was better than expected, largely down to pre VAT rise purchases. RICS housing prices remained more buoyant than expected too.
The main event to keep and eye on as we move further into the week will be the Bank of England monetary policy decision, so subdued trading will likely continue as investors await that news.
Although MPC minutes released last month show a mild upward revision in voter sentiment, markets do not expect the central bank to change interest rates or QE. The market is expecting a 25% or so chance of a rate hike on Thursday.