Cable has advanced in early European trade, presently at 1.6115. It’s an important day for sterling, what with the latest BOE rate decison coming down the pike.
The Old Lady is almost certain to keep rates on hold. The main interest for the market is in what the bank does with QE. There has been a growing feeling the programme will be extended by £25 bln to the present £150 bln ceiling. That would be seen as a negative for sterling, but such an eventuality must be at least partially discounted by now.
The real danger for sterling would be if the authorities signaled they wanted to extend the programme even further.
You never know, things might even be left on hold for now and that would probably provide sterling with a nice rally.
For today, resistance now up at 1.6115/20 and then 1.6145/50.