The Pound Sterling Live

The pound to US dollar exchange rate is 0.09 pct lower at 1.5196.

The pound Australian dollar exchange rate is 0.03 pct lower at 1.5376.

Please Note: The above are quotes from the inter-bank market. When passing on their retail rates banks will ADD their own discretionary spread, driving up the cost of currency. However, an independent FX provider will guarantee to undercut your bank's offer, thus delivering more currency. Please find out more here.

11:35: Some key takeaways from the Inflation Report

BOE says:

That inflation will remain above 2% target for next 2 years, and also revises up growth forecast for 2013.

UK will have a modest reocvery, still cites Eurozone as main risk to UK economy.

Inflation forecasts revised slightly lower.

Raises GDP forecasts, expects 0.5% growth in Q2.

11:07: King speaks - gains for GBP likely to stall from here

"GBP rises to 1.5250 on the back of the IR, but gains from here are stalled, overall we still think GBP looks vulnerable," say following the Bank of England Quarterly Inflation Report.

9:45: UK labour data is a relief respond to today's labour data release:

"UK labour data is a relief, and has helped GBPUSD to spike to 1.5260 - 50-DAY SMA - is still the level to beat."

April jobless claims fall, claimant count drops to 4.5 pct from 4.6 pct, but the UK is creating fewer jobs.

The unemployment rate was 7.8% of the economically active population, up 0.1 percentage points from October to December 2012 but down 0.4 from a year earlier. There were 2.52 million unemployed people, up 15,000 from October to December 2012 but down 92,000 from a year earlier.

8:40: Technical forecaster warns pound sterling to slip further versus US dollar

Craig Erlam at Alpari UK says the technical charts don't bode well for sterling:

"Sterling is continuing to slide against the dollar, since bouncing off the 50 fib level earlier this month. Since then, the pair has broken below the middle bollinger band last week, followed by the ascending channel on Monday.

"Yesterday, the pair closed below the 50-day SMA for the first time since breaking above it back at the start of April, which only added to the bearish outlook for the pound. The pair is trading slightly higher this morning, although I don’t expect it to gain any real momentum. We could see it test the 50-day SMA as a new level of resistance before continuing to head south."

8:10: Sterling could sell-off later

Lloyds Bank Research give their forecasts for the pound sterling ahead of today's two events, UK employment report and Bank of England Inflation Report:

"We expect the UK claimant count to fall by more than the market generally expects today, and this should provide some initial support for GBP ahead of the Quarterly Inflation Report, which should be the day’s main focus for the pound. We would expect a weaker inflation profile and little change to the growth profile in the report, and on the surface this suggests sterling may sell off in response."

8:05: Spot rates at the market open

The British pound sterling (Currency:GBP) is mixed ahead of today's key event - the Bank of England Inflation Report:

The pound to euro exchange rate is 0.08 pct higher at 1.1781.

The pound to US dollar exchange rate is 0.08 pct lower at 1.5198.

The pound to Australian dollar rate is 0.09 pct higher at 1.5396.


8:00: UK unemployment, inflation report in focus today

"In focus today will be the UK Unemployment data which is seen largely unchanged after last month’s improvement. The BoE’s inflation report will be King’s last and could see him offer signs of a slight recovery (optimism, lower inflation). Will he leave on a high?" asks Mike van Dulken, Head of Research at Accendo Markets.

Lloyds Bank Research: "UK employment data likely to be GBP positive, but volatility likely around QIR."