UK pound is mostly steady today following the latest Bank of England decision. Sterling is mostly rangebound against other majors, making little changes as Forex traders await the latest plan from the ECB about how to fix the sovereign debt crisis.
The BOE’s Monetary Policy Committee announced that it would keep the interest rate the same, and it would also maintain the same level in its asset repurchase program. The announcement, made by BOE governor Mervyn King, was in line with expectations, and didn’t come as much of a surprise to anyone.
More traders are interested in the in-depth details of what the ECB plans to do next. Rumors of more bond purchases have been flying for weeks, and there are hopes that Mario Draghi has a plan for the eurozone. A better situation in the eurozone would help the UK pound, and right now the pound is getting a bit of help from better risk appetite.
Overall, though, pound is likely to remain somewhat rangebound for the time being. Until more is known about what is next for the eurozone, and where the global economy is headed, most Forex traders are likely to sit tight.
At 12:41 GMT GBP/USD is up to 1.5903 from the open at 1.5902. EUR/GBP is down to 0.7920 from the open at 0.7923.
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