Outlook for Pound / US Dollar Exchange Rate Confirmed as Positive as GBP Surges in Morning Trade

A look at the wholesale currency markets in midmorning:

• The Pound to US Dollar exchange rate is 0.38 pct up on a day-to-day basis; GBP/USD is seen at 1.5964 at 10:25.
• The US Dollar to Pound Sterling exchange rate is 0.6264.

BE AWARE: These are wholesale quotes. Your bank or provider will add their own discretionary rate when passing on retail FX. However, an independent FX provider will guarantee to undercut your bank's offer, thus delivering you more currency. Please learn more here.

British Pound in a positive reactions to MPC Minutes

The Bank of England MPC voted unanimously in favour of keeping QE and bank rate unchanged. The Bank also said that a continued rapid house price increases was a concern, and upside risks to MPC growth forecasts had increased sine  August.

"Gilt yields also higher after the BOE minutes. BOE noted the upward movement in UK rate expectations, but took no action. The trouble with forward guidance: you must be firm. If growth indicators stay strong BOE may abandon policy and deal with credibility" - Forex.com.

"GBPUSD hits fresh 8-month highs after BoE minutes" - Investing.com.

"EUR/GBP alert! EUR/GBP has dropped more than 0.3% in the last hour, from 0.8391 to 0.8365" - EasyForex.

Outlook for the Pound Sterling remains positive

According to Luc Luyet at MIG Bank buying interest for Sterling remains in strong supply:

"(Yesterday's) mild price correction suggests a persistent buying interest. The next resistances can be
found at 1.6000 (psychological threshold) and 1.6179. Supports are at 1.5886 (17/09/2013 low) and 1.5776 (12/09/2013 low) holds."

According to ICN Capital Markets:

"The trading range for today is among the key support at 1.5770 and key resistance at 1.6055.

"The general trend over short term basis is to the upside as far as areas of 1.5100 remains intact targeting 1.6010."

Emmanuel Ng at OCBC says: "Cooler than expected UK inflation numbers and a weak dollar environment saw the GBP-USD ending relatively flat on Tuesday.

"Expect consolidation to kick in around 1.5965 while an initial floor may be expected towards 1.5870."

Ahead: US FOMC

The next big hurdle for the Pound to US Dollar exchange rate comes at 19:00 tonight when the US Federal Reserve communicates with the markets.

Kathy Lien at BK Asset Management believes that today's event will be largely negative towards the US Dollar:

"Knowing that investors have waited with bated breath for this month's FOMC meeting, team Bernanke know that if they fail to manage the market's expectations properly, they risk triggering a sharp rise in volatility across the financial markets that could end up threatening the overall recovery.

"A reduction in Quantitative Easing should be positive for the dollar but investors can't assume that the dollar will automatically rally post FOMC.  

"Strategically, the Fed will most likely strive to underwhelm, with the hopes of limiting any rise in yields, collapse in stocks and rally in the U.S. dollar."