Earlier today the Pound touched a three month high to the Dollar ahead of a Bank of England (BOE) Policy meeting today.
Today's gains for the Pound against the Dollar is mainly attributed to speculation that the BOE is likely to refrain from expanding monetary stimulus when it holds a policy meeting today.
Should the BOE puts off additional easing today, we could see gains continue for a little while longer.
The BOE's Monetary Policy Committee seems likely to keep the target for its program of bond purchases (otherwise known as quantitative easing) at 375 billion pounds ($583 billion). In a recent meeting in April, most of the panel had said that the monetary policy was already "highly stimulatory."
The BOE's Monetary Policy Committee seems likely to keep the target for its program of bond purchases (otherwise known as quantitative easing) at 375 billion pounds ($583 billion). In a recent meeting in April, most of the panel had said that the monetary policy was already "highly stimulatory."
Sterling earlier traded at $1.5538 while the Euro traded at $1.3159. The Yen climbed by 0.3% to 98.72 per Dollar and by 0.3% to 129.90 per Euro.
The Euro had held its biggest gain in three weeks as a Spanish bond auction was set for today. Spain will auction debt maturing in 2016, 2018 and 2026.
This will follow Portugal's first 10-year debt sale in 2 years, following its bailout in 2011, which saw investors submit bids for 10.2 billion Euros ($13.4 billion) of the nation's 10-year notes.
German data is due out on Friday which could show that exports from Germany had risen by 0.5% in March following a 1.5% drop in February. On Wednesday a report had shown that the nation's industrial production had grown by 1.2% in March from 0.6% in February.
The Euro had held its biggest gain in three weeks as a Spanish bond auction was set for today. Spain will auction debt maturing in 2016, 2018 and 2026.
This will follow Portugal's first 10-year debt sale in 2 years, following its bailout in 2011, which saw investors submit bids for 10.2 billion Euros ($13.4 billion) of the nation's 10-year notes.
German data is due out on Friday which could show that exports from Germany had risen by 0.5% in March following a 1.5% drop in February. On Wednesday a report had shown that the nation's industrial production had grown by 1.2% in March from 0.6% in February.
The Yen's climb was mainly attributed to Asian stocks having earlier erased gains, with the MSCI Asia Pacific Index of shares having slid by 0.3%.
With confidence remaining low that we could see further strong readings on the U.S. economy, it seems that the Dollar-Yen could remain constrained in the near term.
With confidence remaining low that we could see further strong readings on the U.S. economy, it seems that the Dollar-Yen could remain constrained in the near term.
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