Sterling Pressured Ahead of BoE

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The overall strength of the US Dollar had Pound traders sitting on the sidelines and waiting for the outcome of today's meeting of the Bank of England. The growing uncertainty surrounding the looming Brexit is also weighing on Sterling. Most analysts and traders are in agreement that the BoE will also take a pause at this crucial time, maintaining the status quo in terms of interest rates and asset purchases, and waiting to see how the Brexit negotiations between the Prime Minister and her opponents in Parliament will ultimately play out. Yesterday, the president of the EU chastises those members of Parliament who are pushing for Britain's withdrawal without an exit strategy in place.

As reported at 10:51 am (GMT) in London, the GBP/USD was trading at $1.2895, down 0.28% and establishing a new session trough; the day's high was recorded at $1.2962. The EUR/GBP is trading at 0.8780 Pence, a gain of 0.03%; the pair has ranged from a low of 0.87761 Pence to 0.87987 Pence.

German Data Disappoints

In the Eurozone, the latest economic data out of Germany is casting doubt over the Eurozone's future growth. Germany is the largest economy in the EU, and any misses in key output figures will weigh on the single currency. Germany's statistics bureau reported earlier today that Industrial Production figures for December (seasonally adjusted and month-over-month) fell unexpectedly to -0.4%, against expectations of a rise to 0.7 from the previous reading of -1.3% (which was revised from -1.9%). The EUR/USD was trading lower at $1.1335, down 0.26%.

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.