Great Britain Pound Vulnerable Ahead of BoE Meeting on Thursday

The Great Britain pound was soft on Wednesday as traders were nervous ahead of the Bank of England policy meeting on Thursday. The currency fell against such rivals as the US dollar and the Japanese yen but managed to gain on its European peers, including the euro and the Swiss franc.

The BoE will announce its decision at 12:00 GMT tomorrow. Experts predict no changes to the existing monetary policy, meaning that the main interest rate will stay at 0.5% and the size of the asset-purchase program will remain at £435 billion. But market participants will carefully study central bank’s comments as well as the quarterly Inflation Report, trying to assess whether the BoE stance leans to more hawkish or more dovish side.

The Halifax Bank of Scotland released its House Price Index today, revealing a drop by 0.6% in January following the 0.8% decline in December. Analysts had counted on a 0.2% increase.

GBP/USD declined from 1.3948 to 1.3877 as of 16:05 GMT today. GBP/JPY dropped from 152.83 to 151.64. GBP/CHF rallied from 1.3065 to 1.3110, bouncing from the daily low of 1.3023. EUR/GBP declined from 0.8873 to 0.8852, retreating from the session high of 0.8897.

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