"Cable remains close to 1.53, but appears fragile ahead of the BoE’s Inflation Report tomorrow, with a drop towards 1.52 still possible. This move could also help EUR-GBP rally above 0.85."
11:17: Pound sterling still feeling impact of 4PM flash-sale
The pound sterling is soft today following a sell-off that caught many by surprise.
Mark Deans at Moneycorp says:
"The pound's downward drift was exacerbated by a four o'clock sell-off which appeared out of nowhere. There were no UK data to do any damage; indeed the only figures of any consequence during the London session were for US retail sales."
Nevertheless, it is this type of technically-inspired action that is able to change short-term direction in a market; hence GBP is likely to remain under pressure ahead of any major news event with the possibility to change direction.
10:14: What is set to drive the GBP/USD in coming hours?
Lloyds Bank Research on the near-term outlook for the pound sterling:
"USD performance has been the main driver for GBP/USD in the past few sessions, and with little on the UK calendar today, it looks set to continue; but with also little on the US calendar other than NFIB small business optimism indicator today, GBP/USD looks likely to remain range bound ahead of tomorrow’s UK releases; with the 50-day moving average at 1.5258 likely to offer good initial support."
8:35: GBP mixed
The British pound sterling (Currency:GBP) is mixed today - at present there is little by way of GBP-specific action for traders to focus on so the wider themes surrounding the Yen, Aussie dollar and US dollar are driving markets at present.
The pound to euro exchange rate is 0.1 pct lower that seen at last night's close; GBP/EUR is at 1.1781.
The pound to US dollar exchange rate is 0.03 pct higher at 1.5306.
The pound to Australian dollar exchange rate is 0.12 pct lower at 1.5357.
Please Be Aware: The above quotes are derived from the wholesale currency markets - your bank will affix their own discretionary spread when passing on the retail rate. However, an independent FX provider will guarantee to undercut your bank's offer, thus delivering you more currency. Please find out more here.
8:30: Pound sterling moves likely to remain order driven
Piet Lammens at KBC Markets:
"There were no important eco releases in the UK and in Europe. So, trading in the EUR/GBP cross rate was order driven and technical in nature. Over the previous days we indicated that sterling failed to profit from some tentative signs of an economic improvement in the UK. This pattern continued yesterday. Sterling even underperformed EUR/USD."
We are inclined to believe today's currency action for GBP will mimic yesterday.