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NEW YORK (Reuters) — The dollar rebounded from a one-year low against the euro Friday as waning risk appetite cut demand for higher-yielding currencies and boosted safe-haven demand for the greenback.Sterling declined across the board, hitting a near five-month low euro on renewed concerns about the U.K. banking sector.The dollar has sold off sharply this month as investors shifted into riskier assets on increasing signs the global economy is recovering. The prospect of low U.S. yields and concerns about the U.S. fiscal deficit fueled dollar selling.But the currency gained a respite on Friday as investors trimmed their positions ahead of holidays in Japan and Singapore next week, although the trend for broad dollar weakness was seen as likely to persist.”Today overall has been a retracement day and a profit-taking day,” said Andrew Busch, a global FX strategist at BMO Capital Markets in Chicago. “(But) I don’t see anything on the horizon just yet that would take us out of this sell-the-U.S. dollar mode.”With no U.S. data to lend direction, currencies are taking their cues from equity and commodity markets. World equities came under pressure after scaling an 11-month peak as investors took stock of recent hefty gains, although Wall Street ended higher in a choppy session.”I still think that currencies are at the mercy of the stock market,” said Fabian Eliasson, vice president of currency sales at Mizuho Corporate Bank in New York.In late New York trading, the euro fell 0.3% to 1.4701. It hit a one-year high on Thursday and has risen 2.6% so far this month.The dollar index, which measures the dollar’s value against a basket of six major currencies, rose 0.4% to 76.500, having bounced off Thursday’s one-year low of 76.010.Sterling slumpsThe yen fell after Japanese Finance Minister Hirohisa Fujii said he did not want to be perceived as backing a strong yen.The dollar was last up 0.4% at 91.38 yen having rebounded from a seven-month low hit on Wednesday.For the week, the euro rose 0.7% against the dollar. The U.S. currency gained 1.1% against the yen, the first week of gains in six trading weeks. The dollar index was 0.2% lower on the week.Sterling fell 1.2% to 1.6245 after news that the U.K. government had set tougher-than-expected conditions for the potential exit of Lloyds Banking Group from a state-run arrangement to protect its assets, which underlined the fragility of U.K. banks.Lloyds said on Friday it was weighing alternatives to the arrangement to insure it against credit losses.The euro rose 1% to 90.51 pence, after hitting a session high of 90.57 yen, the highest level since late April.

NEW YORK: The U.S. dollar may stay mired in a narrow range as concerns about the global economy weigh on the market. In an op-ed piece published in the New York Times, billionaire investor Warren Buffett warned that the “gusher of federal money” the U.S. has unleashed to combat the financial crisis could have dire consequences for the dollar as the economy “appears to be on a slow path to recovery.”"Unchecked greenback emissions will certainly cause the purchasing power of currency to melt,” he said. “The dollar’s destiny lies with Congress.”Separately, Curtis Mewbourne, a PIMCO managing director, said in a research report on PIMCO’s Web site that the global economy has entered a “New Normal” that will mean lower potential growth around the world. Mewbourne argues that the balance of power between developed and emerging economies is shifting and that large economies such as the United States, Europe and Japan are “nearing the tipping point of global economic impact.”"We are clearly seeing a loss of status for the U.S. dollar as a store of value,” he said. “In combination with other factors, that likely means a continuing devaluing of the U.S. dollars versus other currencies, especially the [emerging market] currencies.”Outlook: More choppy trading ahead. The dollar was mixed Wednesday afternoon as U.S. stocks headed higher on the back of rising oil prices, which were boosted by government figures showing a larger-than-expected drop in U.S. crude inventories.But many traders say the broad rally in stocks and higher yielding currencies over the last few months, which has been based on signs of economic stability worldwide, may have been overdone. “Questions are being raised over the recovery outlook,” said Gareth Sylvester, senior currency strategist at HiFx. “The market is paring back some of the over-exuberance that has been priced in recently.”Sylvester said he expects trading in the currency market to be “choppy” as investors grapple with mixed economic news. Wednesday’s action. Concerns about the global economy were bolstered earlier Wednesday after Chinese shares tumbled 5% as investors worried the government will tighten its monetary policy. The Shanghai Composite Index has fallen 20% in two weeks.The dollar was down 0.7% versus the euro to trade at 1.4236. It fell 0.8% against the Japanese yen to ¥93.92. But the greenback edged up 0.1% against the British pound to 1.6539.The U.K. currency was under pressure after the Bank of England released meeting minutes that showed that key members, including Governor Mervyn King, had voted for a more aggressive quantitative easing program. Earlier this month, the BoE announced plans to expand its purchases of government bonds by 50 billion pounds. King and two other central bank members had pushed for a 75 billion pound expansion. That highlighted concerns about the British economy and suggested that a recovery in the U.K. may be farther off than previously expected, Sylvester said.

Source:CNN

LONDON (Reuters) — The dollar and yen rose on Wednesday after Chinese shares extended losses, prompting investors to pull back from riskier assets.The Shanghai Composite Index closed down 4.3% on Wednesday, led by recently listed shares as investors bailed out of the market, disappointed the authorities did not support the market which has fallen 20% in two weeks.European shares were pulled lower, falling more than 1.0% by mid-morning trade, while U.S. S&P 500 futures index was also down nearly 1.0%.Amid a dearth of major economic news, traders said the currency market was taking its cue from stock market moves.”Chinese stocks were dumped into the close, and that provided an instant bid to the dollar, with everything coming off on the back of that,” said Christian Lawrence, currency strategist at RBC Capital Markets.0:00
/3:46Stagnant waters in Hong KongThe dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.3% at 79.187. A more positive outlook would emerge if the index were to break above 79.60, which is around the 55-day moving average, traders said.The euro was down 0.2% at 1.4096.The yen also rose broadly as investors fretted about recovery prospects for the global economy. It was up 0.4% against the dollar at ¥94.31 while rising 0.6% against the euro to ¥133.07.”Confidence in the outlook may not be so readily found amongst investors as was so clearly the case in H1,” said Neil Mellor, currency strategist at Bank of New York Mellon.Sterling tumbles on surprise BoE splitSterling extended losses after a surprise split vote in the Bank of England’s decision earlier in the month showing governor Mervyn King and a few others calling for an even bigger 75-billion-pound increase to its quantitative easing program.Meeting minutes showed a split 6-3 vote, with Tim Besley and David Miles joining King’s dissent. They were outvoted by a decision to expand the program by 50 billion pounds.Sterling fell 1.0% to 1.6386 while the pound dropped 1.4% against the yen to ¥154.59.The euro rose 0.8% to 86.04 pence.Meanwhile, higher-yielding currencies such as the Australian and New Zealand dollars dipped, with the Aussie dollar easing 0.5% to 0.8214 and the kiwi also slipping 0.6% to 0.6698.The Aussie had hit an 11-month high on Friday while the kiwi reached a 2009 peak, before both retreated as a sell-off in risky assets gathered pace since late last week.

Source:CNN

NEW YORK (Reuters) — The dollar hit a one-week low against the euro Thursday after the euro zone’s two biggest economies posted surprise returns to growth in the second quarter, helping drag the greenback lower.The European reports contrasted with the United States, where disappointing retail sales cast a shadow over an anticipated rebound in consumer spending in the third quarter. A separate report showing the number of U.S. workers rose unexpectedly last week further weighed on the dollar.The U.S. data came a day after the Federal Reserve gave its clearest statement so far that it saw the U.S. recession nearing an end.”For now, the trend whereby risk seeking is synonymous with dollar weakness has re-established itself as the prevailing theme,” said Gareth Berry, currency strategist at UBS in London, in a research note to clients after the European growth data.In early New York trade, the euro was up 0.7% on the day at 1.4301 , after going as high as 1.4321, its highest in a week, according to Reuters data. Against the yen, the euro gained 0.4% to 136.86 yen .The dollar fell 0.3% versus the yen to 95.74, but its index fell 0.6% to 78.329, its lowest since last Friday.Both the German and French economies expanded 0.3% in the April-to-June quarter, wrong-footing expectations for contractions. Other data showed the entire euro bloc posted a modest 0.1% contraction.The euro climbed after the data, but analysts pointed out that markets were brushing off some of the less rosier GDP readings. Despite only a slight quarterly contraction, the euro zone economy shrank 4.6% from a year ago.The U.S. Commerce Department said total retail sales edged down 0.1% in July after increasing a revised 0.8% in June. Sales in June were initially reported to have risen 0.6%.Analysts polled by Reuters had forecast retail sales rising 0.7% in July, expecting a boost from the government’s “cash for clunkers” program that gives consumers money to swap aging gas-guzzlers for new, more fuel efficient models. “The decline in the headline number for retail sales despite much talk of the ‘cash for clunkers’ program came as a big disappointment,” said Matthew Strauss, senior currency strategist at RBC Capital Markets in Toronto. “I’m not surprised to see the dollar giving up its earlier gains versus the yen as investors are flocking to the Japanese currency as a safe haven.”Initial claims for state unemployment insurance benefits climbed 4,000 to a seasonally adjusted 558,000 in the week ended Aug. 8 from 554,000 the prior week, the Labor Department said. Higher-yielding currencies such as the Australian and New Zealand dollars gained around 1% each, extending gains made the previous day.Monetary policy in focusSterling rose 0.7% to 1.6607, recovering from a two-week low touched on Wednesday, when the government reported the U.K. jobless rate hit a 3-year high and the Bank of England’s inflation report suggested that markets were expecting rates to rise too early.The Fed held its benchmark rate near zero on Wednesday and said it would likely stay there for an extended period to guide the way to recovery. It also said the economy was showing signs of leveling out, which boosted risk sentiment.Still, a degree of caution remained over the Fed’s move to extend the time frame of asset purchases as it indicated the economy was still vulnerable, analysts said.”The problem with Fed statement is that the market can read into it what it wants, leaving both sides content … hence, for now it is still unclear which way the USD will jump,” said Stuart Bennett, senior FX strategist at Calyon in London.

Source:CNN

NEW YORK (Reuters) — The dollar slipped from a 1-1/2 week high against the euro Wednesday with investors cautious ahead of the Federal Reserve’s policy statement due later in the session.The focus on the Fed overshadowed a U.S. Commerce Department report that indicated the U.S. trade deficit widened in June to 27 billion, as goods imports increased for the first time in 11 months on higher oil prices.Sterling recovered from the session lows and stayed under pressure after the Bank of England’s quarterly inflation report suggested that markets were pricing in rate hikes too early.”The currency market will at least look for the Fed to sound a bit more optimistic on the state of the U.S. economy, though most eyes will likely be searching for comments on the monetary policy stance with regards to the future of quantitative easing,” said Sacha Tihanyi, currency strategist at Scotia Capital in Toronto.”While a great deal of uncertainty has been introduced by the Bank of England’s actions to expand their QE program, the U.S. dollar would likely suffer should the Fed signal movement in the same direction as dollar bulls would actually be hoping for a signal that the program would not be extended in September,” Tihanyi said.The euro fell to a 1-1/2 week low against the dollar at around 1.4087 before recovering to trade up 0.4% on the day at 1.4208 midway through the New York session. The euro was 0.7% higher against the yen at ¥136.71.”The U.S. dollar is getting hit as the market adjusts positions ahead of the FOMC meeting,” said Marc Chandler, senior currency strategist at Brown Brothers Harriman. A Federal Open Market Committee statement is expected about 2:15 p.m.The dollar rose against the Japanese currency to ¥96.22 after earlier reaching the lowest level this week. Against a basket of major currencies, the dollar fell 0.1% to 79.103.The pound reversed early losses and rose 0.3% to 1.6537 after the Bank of England’s quarterly inflation report though it was more dollar weakness than pound strength.The BoE said British inflation will be well below the 2% target in two years if interest rates were to be lifted in the first quarter, suggesting markets are too early in pricing in rate hikes.”If you look at the Bank of England’s projections mechanically, they’d appear to suggest no increase in rates for quite some time,” said Philip Shaw, chief economist at Investec in London.”But it’s very early to suggest that policy is going to remain on hold for a very long time, given we’ve seen some strengthening in some of the key economic indicators.”The Australian dollar rose 0.3% against the U.S. dollar to 0.8319.The Fed is expected to keep U.S. interest rates steady at near zero, but the focus is on whether the central bank will end its program of buying long-term government securities amid signs the economy is stabilizing from a deep recession.”The market is currently pricing in a 50% probability that the first rate hike will take place at the end of Jan. 10 and Fed comments pointing towards a later date could be short-term dollar negative,” said analysts at Commerzbank.Norway’s central bank held its main interest rate unchanged at a record low of 1.25% on Wednesday, in line with analyst forecasts as the Norwegian economy has shown signs of stabilization.The dollar was 1.7% lower against the Norwegian crown, while the euro fell 1.6% against the Norwegian currency.

Source:CNN

LONDON (Reuters) — The dollar held steady Tuesday as investors pondered whether it could sustain gains from a recent rally, while high-yielding currencies fell after European shares and oil prices relinquished early gains.The Australian and New Zealand dollars fell as European stocks fell 0.3%, prompting traders to sell currencies seen to be higher-risk versus the dollar and the yen.But the dollar was supported after U.S. jobs data last week boosted expectations for higher U.S. interest rates by early 2010, and investors awaited a Federal Reserve policy announcement on Wednesday for directional cues for the currency.Analysts said there were few market-moving events in the European session, and with trading volumes thinning as the summer holiday season gets underway, some said currencies were vulnerable to movements in other markets. “Oil has dropped back from the day’s high, that could be a driver, said Peter Frank, currency strategist at Societe Generale in London. “In very thin volumes, it looks like there’s a certain amount of risk aversion going on.”The euro was up 0.2% to 1.4169, but stayed close to a one-week low around 1.41 hit on Monday. Traders saw support at the 40-day moving average around 1.4095.The market showed little reaction to German consumer price inflation which was revised up to show a fall of 0.5% in July year-on-year, while the harmonized consumer price index posted its first annual drop since the index was introduced in 1995.The Australian dollar fell 0.2% to 0.8355, while the New Zealand dollar slipped 0.7% on the day, after U.S. crude oil prices retreated from the day’s high of 71.22 per barrel to 70.83, up 0.3% on the day.The yen gained broadly, pushing the Aussie down 0.9% to 80.63 yen, off a 10-month high of 82.00 yen on Monday, while the New Zealand dollar fell 1.5% to 64.72 yen, also retreating from a 10-month peak at 65.90.Markets brushed off the Bank of Japan’s decision to keep interest rates at 0.1%. BOJ Governor Masaaki Shirakawa said he saw no risk of a deflationary spiral in Japan.The dollar was down 0.6% at 96.48 yen, off an eight-week high of 97.79 yen set last week.Fed aheadThe euro hit the day’s high against the Swedish crown of 10.33 crowns after ratings firm Standard & Poor’s cut sovereign credit ratings for Estonia and Latvia on Monday. Swedish banks are heavily exposed to the Baltic region, which is gripped by deep recession.The dollar has held onto most of its post-payrolls gains, which has prompted some in the market to wonder if the trend to sell the dollar on strong economic data is nearing an end.Many remain cautious about this, as the dollar had a similar short-lived climb in early June, when a smaller-than-expected drop in payrolls also spurred speculation U.S. interest rates would start to rise sooner than expected.”The dollar is holding onto Friday’s payroll-inspired gains, but it needs some fresh support to avoid sinking back as it did in June,” said Chris Turner, head of FX strategy at ING.The Fed is expected to keep rates steady at 0-0.25% on Wednesday, but paint a slightly brighter economic picture while dampening rate hike speculation. It is also likely to end its 300 billion Treasury purchases program, as scheduled.Traders will keep an eye on the U.S. Treasury’s quarterly refunding, where it will auction 37 billion dollars of 3-year notes on Tuesday of a total 75 billion on offer this week.

Source:CNN

LONDON (Reuters) — The dollar held gains against the euro and a currency basket on Monday following a broad rally late last week on surprisingly strong U.S. jobs figures.Despite slipping a touch against the yen, the U.S. currency was supported by data showing a smaller-than-expected fall in U.S. payrolls, which suggested employment may be turning the corner after months of extreme weakness.”We had a big move on Friday, so we’ll be seeing some consolidation today,” said Martin McMahon, currency strategist at Credit Suisse in Zurich, adding that the dollar may be prone to some profit taking on Monday.He said investors wanted to see if the dollar’s latest move was a sign of a breakdown of the recent correlation between the U.S. currency and risk demand — in which economic data suggesting an improving global economy would batter the dollar as it would increase risk appetite.The euro was little changed at 1.4185, hovering near a one-week low around 1.4154 hit on electronic trading platform EBS in the aftermath Friday’s data.The euro brushed off a surprisingly strong reading of euro zone sentiment on Monday. The Sentix index produced a -17 reading for August, improving from -31.30 last month.The pair traded well off the year’s high of 1.4448 hit earlier last week, with a 0.5% fall in European shares on Monday helping to limit gains in the euro.Against a currency basket, the dollar was little changed at 78.869, while the U.S. currency inched down 0.3% against the yen to 97.30 yen, after rallying as high as 97.79 yen, its strongest in nearly eight weeks, on Friday.0:00
/0:42247,000 jobs lost, U.S. exhalesDollar selling by Japanese exporters in the Tokyo session weighed on early dollar/yen trade, but the dollar pulled away from the day’s low around 97.10 yen in Europe.Some analysts said a post-payrolls rise in Treasury yields helped to support the dollar as it increased the appeal of U.S. debt for some investors, including those from overseas.Fed awaitedAnalysts said that whether the dollar extends its latest gains may hinge on the actions of the Federal Reserve, which ends a two-day policy meeting on Wednesday.The Fed is seen ending its plan to buy 300 billion of longer-dated Treasuries in September, but some saw the possibility that it may discuss extending a separate program to promote the flow of credit to consumers and businesses.Analysts expect the Fed to hold the fed funds rate at 0-0.25%, and some say it may try to discourage speculation of a near-term rate rise, after the payrolls boosted expectations of possible monetary tightening early next year.Analysts at Barclays Capital said the proximity of the payrolls and the Fed meet may explain the dollar’s broad jump.A dovish stance by the Fed may prompt a correction in the dollar, showing that last week’s boost was temporary, they said, while pointing out that the “striking” pace of improvement in both the U.S. and global economy may be dollar-supportive.”Our US economists expect no increase in asset purchases and a more upbeat tone on the economy,” they said in a note.”In our view this would likely be a USD positive and may herald a period where positive news for U.S. yields continues to be a USD positive.”The Bank of Japan will announce its rate decision on Tuesday, while Norway’s central bank will end a policy meeting on Wednesday.

Source:CNN

LONDON (Reuters) — The dollar edged lower against a basket of currencies on Friday as investors awaited U.S. jobs data to gauge the sustainability of a recent risk rally.Sterling remained under pressure after giving up most of its gains this week when the Bank of England surprised markets by expanding its quantitative easing program to 175 billion pounds on Thursday, much more than expected.It also fell after Royal Bank of Scotland said on Friday it posted losses during the first half of 2009.The dollar had seen a broad sell-off earlier this week, hitting the year’s lows against a number of major currencies, as investors sought riskier assets on the back of better corporate earnings and improved manufacturing data.Investors were trimming long positions in risky assets, including stocks and the Aussie, before the key U.S. data, and analysts said the recent dollar-selling may be losing steam.”There is a sense that the market has become a little exhausted with dollar weakness,” said Daragh Maher, deputy head of FX strategy at Calyon.”Any disappointment (in the U.S. payroll figures) could provoke a corrective spike higher in the dollar.”The dollar index, a gauge of its performance against six major currencies, edged down 0.1% from late U.S. trade on Thursday to 77.956, staying above 77.428 touched on Wednesday, a lowest point in more than 10 months.The euro was 0.1% higher at 1.4370 after the European Central Bank kept interest rates on hold at a record low on Thursday. The euro earlier this week rose to a 2009 high of 1.4448 on trading platform EBS.Sterling was down 0.1% at 1.6745 after falling to 1.6722. It fell more than 1% against the dollar on Thursday, retreating from this year’s peak of 1.7044 on Wednesday.Payrolls eyedA Reuters survey forecast the U.S. Labor Department report will show 320,000 workers lost their jobs in July, the least for any month since September when employers cut 321,000 jobs.But the July jobless rate may climb to 9.6% — the highest since June 1983 — from 9.5% in June.”In order to inject disappointment into the market, huge negative numbers like -450,000 or -500,000 may be needed,” said a senior trader for a Japanese brokerage firm.The trader said overall sentiment towards a further rally in risk assets was so resilient that the market looked capable of brushing off negative numbers as big as 370,000 or 380,000 job losses.The dollar was flat at 95.45 yen on selling from Japanese exporters repatriating overseas earnings, traders said.The Australian dollar bounced briefly after the Reserve Bank of Australia’s upbeat comments on the economy affirmed expectations that a rate hike in Australia will come sooner rather later, before it pared gains.The Australian dollar was flat on the day to 0.8390, shedding gains near a 10-month peak of 0.8471 struck earlier this week.

Source:CNN

NEW YORK (Reuters) — The dollar rose versus the yen Thursday as a government report showing a sharp drop in U.S. jobless claims boosted views that the labor market and the economy were stabilizing.Meanwhile, sterling fell after the Bank of England said it would extend quantitative easing, and the euro was little changed against the dollar after the European Central Bank kept interest rates unchanged and said it sees a gradual recovery in 2010.U.S. stocks opened higher and bond prices slipped after the Labor Department said initial claims for unemployment benefits fell to a seasonally adjusted 550,000 in the week ended Aug. 1 from 588,000 the prior week. Analysts polled by Reuters had forecast new claims to edge down to 580,000. Analysts said the report also helped boost risk appetite and may bode well for July non-farm payrolls data due out on Friday. Still, trading may be volatile ahead of the release of the figures, they warned.”We had … a pretty decent number on the initial jobless claims. That boosted risk appetite to some extent,” said Samarjit Shankar, a director of global strategy at the Bank of New York Mellon in Boston.”There’s a lot of hesitation ahead of the big nonfarm payrolls number tomorrow, he added.In morning trading in New York, the dollar was up 0.8% at 95.70 yen .0:00
/0:53Interest rates steady in EuropeThe euro traded 0.2% lower at 1.4380. It pared its losses slightly after ECB President Jean-Claude Trichet said that “looking ahead into next year, after a phase of stabilization, a gradual recovery with positive … growth rates is expected.”The BoE held interest rates at a record low 0.5%, and said it expected to take three months to use up the new funds, and the scale of quantitative easing would be kept under review.”The BoE extended their quantitative easing program, which suggests that the UK economy is still not out of the woods,” Shankar said.Sterling traded at 1.6855. Following the BoE announcement, it fell nearly 1% on the day to 1.6827, retreating from the day’s high of 1.7029, according to Reuters data.

Source:CNN

NEW YORK (Reuters) — The dollar hit a nine-month low against the euro and slipped against the yen Wednesday as investors hoped a slower pace of U.S. private job losses in July hinted at a gradual improvement in the economy.Safe-haven demand earlier lifted the dollar against the euro after reports showed private employers cut more jobs than expected and the dominant U.S. service sector shrank again.But July’s job losses were down from June’s, sparking hope Friday’s more comprehensive government employment report would show labor market improvement.”The jobs headline was a bit disappointing, but the market has been judging mixed data from a glass-half-full viewpoint,” said Michael Woolfolk, currency strategist at The Bank of New York-Mellon. “They’re trying to focus on the positives.”Goldman Sachs (GS, Fortune 500) provided another excuse to do that by revising its real U.S. growth forecast for the second half of the year from 1% to 3%.Late Wednesday, the euro was little changed at 1.4414 but earlier rose to 1.4446, its highest level sine December. The dollar fell 0.3% to ¥94.95.A clutch of better-than-expected UK data lifted sterling to a near 10-month peak at 1.7042. It was last up 0.4% to 1.7000.Recent data from the United States and elsewhere have been mixed, but enough of the data has been encouraging enough to foster hopes that the worst of the recession is over.Investors were pleasantly surprised last month by data showing the U.S. economy shrank by a smaller-than-expected 1% in the second quarter, leaving many to bet on positive third-quarter growth.Wall Street has rallied as a result, though its dip on Wednesday snapped a four-day winning streak. The dollar has also found it difficult to rally as emboldened investors instead seek higher-yielding currencies and assets.”Markets were priced for total Armageddon and guess what? It didn’t happen,” said T.J. Marta, founder of Marta on the Markets in Scotch Plains, N.J. “Now many investors are scrambling, knowing there’s business out there to be done.”The trend to sell the dollar on the view that the worst of the world recession is over has become quite deeply rooted, analysts said.”The default setting is still that risk is on unless we get really clear, definitive data to the contrary, and that doesn’t seem likely at this stage,” said Brian Dolan, chief currency strategist at Forex.com in Bedminster, New Jersey.Next up for currency investors are Thursday’s policy decisions from the Bank of England and European Central Bank.A Reuters poll last week showed economists are split over whether the BoE will inject more money into the economy by extending its asset purchases, although recent brighter UK economic data are seen reducing such chances.But the risk exists, said Daragh Maher, deputy head of FX strategy at Calyon in London. “It would be a brave investor that held on to an aggressively long [pound] position into the BoE meeting.”

Source:CNN