GBPEUR/GBPUSD

The Pound rallied against the majority of the major currencies yesterday, consolidating above 1.16 versus the Euro and trading close to the 1.60 level against the U.S Dollar, as equities rose and global risk appetite improved. Accelerating inflation has rekindled speculation that the Bank of England will eventually need to lift UK interest rates from 0.5%, particularly since the BoE minutes on Wednesday revealed that another member voted for an increase in January.
The Bank of England face a difficult balancing act this year, with members concerned about the economic recovery and accelerating inflation. The Monetary Policy Committee has been split three ways on the best course of action to calm prices, but with the economy slipping back into recession, policy makers are unlikely to raise interest rates in the current climate....

Read more