Sterling has found itself back under a little bit of pressure

Sterling has found itself back under a little bit of pressure this morning after the Bank of England’s minutes this morning were less than positive. Sterling has looked to be edging ever closer to breaking 1.1500 against the Euro but this morning’s comments will only dampen the mood. The nine members of the MPC all agreed the extending quantitative easing from its current £200bn level was “increasingly probable” although voting 8-1 to keep it at its current level. As we expected Interest Rates were left on hold at the record low of 0.5% with a straight 9-0 unanimous vote and an interesting point to note is the comments the Bank made about loosening current policy with includes the decision not to cut the interest rate below 0.5%.

This will only give the under fire Euro some short term breathing space and confirms what we have known for a long time which is that sentiment is key in the current economic climate.

Many investors will be closing watching the Japanese Yen at present as it continues to strengthen with GBP/JPY falling through the 120 level. This current movement will be increasingly painful for Japans economy as exports are already suffering. Many investors will be trying to hedge their bets as to the probability of intervention from Japan and just when it will come.

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Sterling has found itself back under a little bit of pressure

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