GBP-
The payoff for the Pound's 5 week long comeback against the Euro crystalised into GBPEUR's best rate since August yesterday, before traders rethought their bets.
I suspected that the Pound was benefitting from a sleepy first week of August rather than rallying off the back of improved fundamentals.
Yields on French bonds picked up despite the budget agreement on Monday and the Euro powered on even as Eurozone inflation released softer than expected. It all suggests a holding pattern ahead of today's key decisions.
The BoE has higher inflation but a very poor economic and employment outlook, whilst the ECB is seeing falling inflation and an improving economy. The ECB seems more clear cut to signal "business as usual" whilst the tone of the BoE will prove more interesting.
Markets Today
*Please be aware the below rates represent the market rate at 8:00 AM, contact your Caxton dealer or check online for a live quote.
Major Economic Releases (All times in GMT)
Bank of England Interest Rate Decision- 12:00