Cable having opened very marginally firmer this morning around 1.6455, is coming under some pressure in early European trade, presently at 1.6425.

Big risk event for sterling looms this Thursday, when we find out what the Bank of England has decided to do regarding quantitative easing. I’ve heard so many different opinions, it’s mind numbing. They range from QE being on pause for the time being to an extra £50 bln. At the present time I think it’ll be an extra £25 bln, but I might just change my mind, but hopefully not. Against this uncertain backdrop hard to see sterling making too much ground.

Also reports at the weekend that Brown is to use the autumn pre-budget statement to announce new “fiscal stimulus” with extra billions for housing, infrastructure projects and training initiatives. Oh goody, more spending!!!

On top of that we have the situation with the restructuring of the UK banking sector, which will add a note of uncertainty to proceedings. As Sean mentioned earlier that’s never a good thing.

Not much in way of data today;

09:30 GMT: UK PMI manufacturing for October.