Sterling in a holding pattern ahead of industrial data
The pound continued to trade higher against the single currency, up 0.6% at £0.8667 while it stayed lower against the US dollar, with cable trading 0.12% lower at $1.5215.
The Confederation of British Industry will release data on Industrial Order Expectations at 11.00GMT with analysts expecting this leading indicator to print a negative 16 compared to the previous month's negative 20.
Earlier this morning the Office for National Statistics reported that net borrowing for the UK public services printed a decline of £9.9 billion compared to the previous month's rise of $12.4 billion.
The pound sank to multi-month lows yesterday (20 February) against both the dollar and the euro after the Bank of England (BoE) Monetary Policy Committee (MPC) minutes revealed that its nine members had voted unanimously to keep interest rates and asset-purchase unchanged during their 7 February meeting while sterling also took a hit from worse-than-expected jobless data.
“Governor King is running out of opportunities to give the UK economy one last shot in the arm before the 'hotshot' underling from the Bank of Canada, Carney, takes the helm,” said Dean Popplewell, director of currency analysis and research at forex broker, OANDA.
“Member consensus believes that policies targeted at specific bottlenecks in the economy might be better suited rather than simply printing money. The MPC is clearly feeling the heat just like the currency. GBP continues to be awash with talks of large stops further south and closer to 1.5200,” he added.
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