UK Pound Gets Boost Against the US Dollar

UK pound is getting a boost today, heading higher against the US dollar as Forex traders sell the greenback ahead of the upcoming FOMC monetary policy announcement. This rebound comes after losses due to Bank of England minutes. Pound is ready to come roaring back against the US dollar, even as it looks for stability against the euro.

Earlier in the session, UK pound saw some losses with the release of the Bank of England minutes. The results showed that it was a rather narrow vote that kept the Monetary Policy Committee from expanding its asset purchase program. The closeness of the vote leads many to believe that the next meeting could lead to an expansion of quantitative easing. The possibility of weakening the British currency in the name of stimulus sent the sterling down against its counterparts.
However, optimism with the formation of a Greek government, as well as speculation that the Federal Reserve will extend Operation Twist — and maybe even introduce full-fledged QE3 — are providing a boost for the UK pound. Pound is higher now, with Forex traders taking advantage of the earlier drop, and with expectations for a weaker US dollar.
At 13:13 GMT GBP/USD is up to 1.5746 from the open at 1.5725. EUR/GBP is relatively steady at 0.8065, very slightly higher than the open at 0.8066. GBP/JPY is higher at 124.7250, up from the open at 124.1650.

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