POUND LOWER FOLLOWING BANK OF ENGLAND MINUTES

The Pound has fallen following the release of the latest minutes from the Bank of England as all 9 Monetary Policy Committee members voted to hold UK interest rates at their low of 0.50%. In previous meetings 2 members had voted for an increase in the Bank of England interest rate. These minutes have reinforced recent market expectations that it is now unlikely that the Bank of England will increase interest rates in 2015 making the Pound less attractive.

The Pound fell against the US Dollar from an earlier GBP/USD high of 1.5180 to 1.5077 before recovering back to 1.51 whilst against the Euro the Pound fell from GBP/EUR 1.3125 to 1.3020 before recovering back above 1.3050.

Elsewhere the Euro continues to trade at its lowest level against the US Dollar since 2003 trading in the 1.15s and the Swiss Franc remains strong with EUR/CHF trading near parity at 1.0009 and USD/CHF trading at 0.8650.