Sterling currency exchange 'awaiting Bank results'

The currency exchange rate for sterling is looking uncertain ahead of the release of the Bank of England's quarterly inflation report.

Due to be published today (August 11th), the report is expected to suggest that interest rates in the UK will remain low for some time to come.

Daragh Maher, deputy heat of foreign exchange strategy at Credit Agricole, told the news source: "The market is expecting a relatively dovish view from the Bank.

"The risks are: an overtly dovish view, especially as the Fed has edged out in that direction, or more sympathy towards [Monetary Policy Committee member Andrew] Sentance."

Before the Bank released the quarterly report, the pound was trading against the dollar at $1.57 at 09:15 BST, while against the euro sterling bought �1.20 at around the same time.

Meanwhile, the currency exchange rate for the US dollar has broadly improved following the US Federal Reserve's decision to reinvest funds into government bonds, the news source revealed.

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Posted by Chris Barber