Cable sits at 1.6555, up marginally from a North American close Wednesday around 1.6540. Big day for sterling today with the BOE rate decision due.
At the start of the week I was totally convinced the Old Lady would keep rates and QE as is. I still feel that is the likely outcome, but a small degree of doubt has crept into my mind. I still feel they will keep rates on hold, it’s the question of additional QE which is starting to niggle.
Anyways, the market seems strongly in favour of no change on both fronts, so if there is sterling is likely to get hit and hit pretty hard I would suspect.
08:00 GMT: Halifax house price index expected +1.0%
11:00 GMT: Bank of England rate decision.
Technical support 1.6520/25 and 1.6500/05, resistance 1.6560/65 and 1.6580/85.
