The British Pound (GBP) took a hefty beating on Monday as a sell-off started on Friday snowballed as more traders saw positions stopped out of the market. Flows were also to blame with reports of unusually heavy Euro / Pound buying. All eyes are now firmly on Tuesday's UK inflation release.
The British Pound (GBP) is seeing a fresh onslaught of selling pressure on Monday morning as the sell-off sparked on Friday morning continues. Forecasters are warning that further Sterling strength is predicted.
The British Pound (GBP) is in the red on Friday morning - a strong mid-week rally has entered a period of consolidation as Sterling buyers run out of steam. We forecast the GBP to consolidate and even lose ground as we head into the weekend.
The British Pound continues to dominate the forex market on Thursday; Sterling was further underpinned at mid-day when the Bank of England told markets it was keeping policy and forward guidance unchanged. Driving the GBP/EUR higher was a bearish sounding ECB press conference - it seems that the ECB will consider pursuing a policy of easing in 2014 - a scenario that is unfriendly to the euro.
The next big hurdle facing the British pound comes in the form of Thursday's Bank of England MPC decision and a host of analysts are expecting the MPC to communicate changes to the Bank's forward guidance policy.
The British Pound (GBP) is firmer across the board on Wednesday, however event-risk is starting to rise with the ECB and BoE both due to deliver monetary policy decisions tomorrow.
The British pound sterling (GBP) faces no major domestic events on Tuesday; however we will keep a keen eye on the important technical levels to determine whether the positive momentum behind the currency will continue.