With the Bank of England policy decision looming, the Pound Sterling edged higher but analysts say gains are likely to be capped given the backdrop of a potentially messy Brexit. On the issue of a rate decision, the latest polls show economists expect a 25 basis points rate increase on Thursday, as the Bank of England's Monetary Policy Committee finally adjusts rates in a post-financial crisis environment.
As reported at 11:00 am (BST) in London, the GBP/USD was trading at $1.3125, a gain of 0.21% and off the session peak of $1.3139 while the low for the trading day is at $1.3036. The EUR/GBP is trading at 0.89033 Pence, up 0.05% and off the session high of 0.89100 Pence.
Tuesday Market Movers
Ahead of Thursday's BoE meeting, there are several fundamental events coming out tomorrow which have the potential to be market movers. The Bank of Japan will announce its policy decision; analysts are calling for rates to remain at the ultra low -0.1%. Later in the trading day, Eurostat will release its preliminary 2nd quarter GDP figures and July CPI for the Eurozone. Finally on Tuesday, New Zealand Statistics will announce the NZ unemployment rate and change for the second quarter.