GBP – Austerity And Bank Of England

The Sterling, like its counterparts, found itself mired in a rather tight range on Tuesday. The U.K. will release its Trade Balance statistics today, but the likely focus of investors will be on comments coming from the government regarding fiscal policy and belt tightening. Also it would be wise to keep in mind that the Bank of England holds their monetary policy meeting tomorrow and will announce its outcome. Coming on the heels of the first full month in power for the Conservatives in their coalition it will be of interest for investors to see if the BoE and acting government see eye to eye. The GBP is still within the lower realms of its value against the USD. The Sterling has been under a steady shadow of Sovereign Debt questions because of the EUR centric sphere and high deficits in the U.K. – and this has proven a volatile mix.

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