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HISTORICAL DETAILS
% Change
1 Wk -0.59%
1 Month 0.70%
3 Months 2.40%
6 Months 4.87%
1 Year 7.89%
52 WEEK
High 1.6344
Low 1.4231
BLOOMBERG MEDIAN FORECASTS
Q1 2011 1.59
Q2 2011 1.60
Q3 2011 1.62
Q4 2011 1.63
DAILY DETAIL
Sterling was trading lower against a broadly firmer US dollar this morning but was trading higher against most other currencies. Losses in GBP/USD have been limited ahead of the Bank of England’s interest rate decision at midday today. It is expected that interest rates will remain on hold at 0.5% and we will have to wait until the minutes are released to see whether there has been a shift in voting among policy members. The Bank of England is coming under increased pressure to lift interest rates as inflation is more than double the central bank’s target and the ECB prepares to move on rates. However, there are a number of economists who feel that raising rates in the UK would be a mistake, putting pressure on an already fragile economic recovery. In any case, it is not likely that policy members will move on rates before the release of first-quarter GDP figures. Sterling was also finding support this morning after industrial and manufacturing production both increased by more than forecast in January. Industrial production gained 0.5% against expectations of 0.4%, while manufacturing production rose 1% as forecast. The latest data supports the view that the contraction in fourth-quarter GDP was only temporary and that the economic recovery is continuing in the UK. David Choe, London
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