Sterling exchange steady against dollar

Sterling has held a stable exchange rate trading at $1.615 at 8:00 this morning (December 21st).

The steady rate comes as a relief to compared to last week's two-month low of $1.6053.

However, economists expect to see changes in the figures later this week as the Bank of England's Monetary Policy Committee (MPC) meets on Wednesday to discuss the nation's finances.

Adam Cole, global head of FX strategy at RBC Capital Markets, told Reuters: "We would expect the tone of the minutes [from the MPC] to err on the side of hawkishness with the discussion supporting the notion that the end of the quantitative easing road is in sight."

However, Darah Mahre from Calyon, who also spoke to Reuters, gave a different opinion.

Mr Mahre said there were fears that the MPC could issue an earlier review of quantitative easing which would "likely keep sterling on the back foot unless the data can begin to improve".

Earlier reports suggested that the MPC will not consider the expansion of quantitative easing until February.