Both decisions as expected. QE unchanged too.

Rates little changed since before the announcements.

GBPUSD trading at 1.6337

EURGBP is trading at 0.8715 ( GBPEUR 1.1476 )

EURUSD is also little changed around 1.4233

Now awaiting the all important and regular ECB press conference at 13.30 BST when ECB President Trichet will explain the thinking behind the decision but more importantly may drop hints as to future policy.

We particularly look for the retention or removal of key phrases such as "price stability" which are used frequently and for purposes of consistency to give little away. Trichet is too experienced in these matters to slip up so any change in phrasing is deliberate. It’s then down to the assembled journalists to try and trip him up …….

But as he nears the end of his term of office he’ll be keen to keep his reputation intact.

Interbank Rates as of 12.50 GMT

Current Price

EUR/USD

1.4233

GBP/USD

1.6334

EUR/GBP

0.8715

GBP/EUR

1.1476

GBP/CHF

1.2665

GBP/AUD

1.5454

GBP/CAD

1.5868

EUR/CHF

1.1032

GBP/HKD

12.6630

GBP/ZAR

11.1833

Agree or disagree? Then please leave a comment in the box below or contact me by e-mail.

Mike ‘Oscar’ Paterson has been in the Forex trenches for nearly three decades working as a senior Spot trader in London at UBS, Chief Dealer FX at the State Bank of Victoria and in charge of Spot CHF at Credit Suisse with a daily turnover in excess of $1.5 billion. Mike now works as an independent consultant providing a fully bespoke service to the corporate and private sectors in physical FX delivery as well as guiding those who wish to improve their currency trading. Mike also presents seminars and workshops and writes for a number of publications.
To contact Mike please call +0044 (0) 1732 700383 or email mike.paterson@economicvoice.com
The views expressed above are those of the author and should not be taken as investment advice. MSP Foreign Exchange Services will have no liability for, or to, any persons executing trades based on the content above.

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