Forex - Pound in focus ahead of BoE minutes, GDP data UPDATE |
|
|
|
Published
:
Wed, 24 Jan 2007 10:44
|
(Updating with details about GDP data)LONDON (AFX) - The pound was well-bid ahead of the Bank of England's the publication of the minutes from its latest rate decision where a surprise quarter point rate hike emerged.The minutes are expected to a show a 7-2 vote in favour of the hike to 5.25 pct, with market-watchers interested to see where the rate-setters focus lay in making the decision.A hawkish set of minutes may well propel the pound above the 2 usd level.Yesterday, the pound hit a high 1.9916 usd, a 14-year high, before easing back slightly.Today could see a test of the 2 usd psychological barrier, however.Expectations of hawkish set of minutes are running high after Bank of England governor Mervyn King's speech last night.Late yesterday, King gave a hawkish speech in the style of the letter he might have to write to the Chancellor of the Exchequer explaining why inflation was above 3 pct.Also out today, figures from the office of National Statistics are expected to show the UK economy grew by a quarterly 0.7 pct in the fourth quarter of 2006.That would be the fifth consecutive 0.7 pct rise, which is considered to be at or just above the UK's trend rate.At 9.22 am GMT, the pound was at 1.97841 usd while the euro wa at 0.6580 stg.sivakumar.sithraputhran@thomson.comss/ssCOPYRIGHTCopyright AFX News Limited 2006. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
|
|
|
|
|
|
Print this Story
Forex - Pound in focus ahead of BoE minutes, GDP data 