On Thursday the British currency hit two-week high, while U.K. stocks were on track to break a six-session winning run, with miners leading the charge south after a recent sharp rally, as investors awaited the Bank of England meeting due later in the day.
GBP/USD was last at 1.5339 - the session high. Sterling was lower vs the euro, however, with EUR/GBP last up 0.46% at 0.7369.
In the stock market, the FTSE 100 index dropped 0.28% to 6,318.56, after closing at its
highest level since Aug. 20 on Wednesday as part of a broader European
and U.S. rally.
The upbeat trading mood earlier in the week came after shockingly bad U.S. labor-market data out last Friday, which spurred speculation the U.S. Federal Reserve won’t raise interest rates this year.
Soft European data — especially from Germany this week — have also raised expectations that the European Central Bank will add easing measures. Loose monetary policy usually buoys stock markets.
The Bank of England
was in focus today ahead of its monthly interest-rate decision due
at noon London time, or 7 a.m. Eastern Time.
The central bank is widely
expected to keep the benchmark rate at a record low 0.5%, where it has
stood since March 2009.
As part of recently launched changes to its communication strategy, the BOE will also release minutes from its October meeting at noon.
