Cable sits at 1.5720, very marginally firmer from North American close Tuesday down around 1.5705. Probably the calm before the storm.
Plenty for sterling traders to get their teeth into today:
08:30 GMT: Bank of England minutes
08:30 GMT: PSNB for September expected 14.5 bln; PSNCR expected 15.3 bln
08:30 GMT: M4 money supply for September expected +0.3% m/m, +1.5% y/y
11:30 GMT: UK government spending review
Market will be looking to the BOE minutes for pointers as to how close the Old Lady may be to sanctioning further QE.
I was very interested to see comments from NIESR’s acting director Barrel. He opined that “there’s no reason for the Bank of England to do anything in the next three months” regarding increased QE.
Mr Barrel says “growth in second and third quarters this year has been stronger than we anticipated three months ago. The case for further quantitative easing now is weaker than it was.”
