Pound Steadies as BoE Decision Looms

By: DailyForex.com

The Pound Sterling was steady during London trading and remained close to a 4-month trough as FX traders prepare themselves for the Bank of England’s monetary policy decision due to be released shortly. Economists are predicting the BoE will leave rates unchanged but could signal another rate hike for August. Earlier today, the UK Office of National Statistics reported that industrial production for March, both on a month-over-month and year-over-year basis, failed to meet analysts’ forecasts. Manufacturing production came in higher than expected at -0.1% (month-over-month) in March, against a forecast of unchanged output at -0.2%.

As reported at 10:50 am (BST) in London, the GBP/USD was trading at $1.3576, a gain of 0.19%; the pair has traded from a session trough of $1.3523 to a peak of $1.3589. The EUR/GBP is trading at 0.87507 Pence, a gain of 0.02778%; the pair earlier hit a high of 0.87707 Pence while the low is at 0.87400 Pence.

Focus on US CPI and Jobs Data

Later today, FX markets’ attention will turn to the United States where personal inflation data will be released by the US Department of Labor Statistics. Core CPI, which strips out volatile components such as food and energy prices, is predicted to come in at 2.2% in April (year-over-year). Also due out is data on initial and continuing jobless claims. The Federal Reserve Bank will use that data to decide future policy, given its dual mandate of full employment and price stability.

Barbara Zigah is a freelance journalist living in Ghana, who specializes in Forex-related content; her online work has appeared in the IB Times, NASDAQ, Benzinga, and Seeking Alpha.