Wednesday, 16 Feb 2011

Sterling Halts Bullish Run

The UK pound capped its bullish run earlier today, following a statement from the Bank of England Governor. The BOE sounded a pessimistic note with regards to any future increase in British interest rates. As a result, the GBP tumbled against most of its main currency rivals. The GBP/USD has fallen well over 100 pips and is currently trading around the 1.6045 level. Against the euro, the pound slipped some 50 pips and the EUR/GBP is currently trading at the 0.8415 level.

Turning to the rest of the day, traders will want to pay attention to the US Building Permits figure at 13:30 GMT. Analysts are forecasting a slight drop in the figure over last month. If true, the dollar may turn bearish against its main currency rivals, like the euro and yen, in afternoon trading. In addition, traders will want to keep an eye on the FOMC Meeting Minutes, scheduled to be released at 19:00 GMT. Any mention of positive growth in the US economy may help support the greenback.