This morning, the British pound is subdued ahead of the today’s Bank of England meeting where the MPC are expected to raise rates by 0.25%. Such has been the telegraphing of such a move that any failure to raise rates today could see the pound plunge today.
Elsewhere, the Australian dollar is out performing after better than expected trade balance data. The AUD/USD is up 0.5%, with the NZD/USD performing well in sympathy.
The euro is performing well, with the EUR/GBP dipping lower for the second straight day as money ebbs away from the pound.
The US dollar index is lower despite better than expected economic data in the US yesterday.
The USD/JPY is following suit as the pair nudges lower after gains yesterday.
Today, we have UK construction PMI at 09.30.
At 12.00, we get the BOE inflation report, alongside the rate statement where most expect an increase. Carney speaks at 12.30.
Also at 12.30, we get US unemployment claims, FOMC member Powell speaking, preliminary non farm productivity and unit labor costs.
The USD/JPY is slipping lower this morning, but the bull run looks well set for the time being.