We have another one of our hugely successful ‘Bank of England’ webinars this Thursday at 14.00 BST. Last month’s predicted the GBP fall to 1.10 and 1.60 against the euro and the dollar respectively; what will we predict on Thursday? Email me at research@worldfirst.com if you need an invitation.

Sterling fell to a trade-weighted 5 month low yesterday as market participants became increasingly skittish before today’s Bank of England announcement. Interest rates and QE policy for the next month will be released at 12 Noon BST.

Data on Wednesday showed that company earnings and profitability had once again worsened for a fifth successive quarter and now stands at its lowest level since 2001.

While we believe the Bank of England will hold rates and QE today, there is increased chatter that the amount of QE may be raised in November so as to bolster this recent recovery and not allow it to become a ‘false dawn’. This would however have negative effects on the pound. More details are available on this through our webinar at 14.00 BST (details on how to obtain an invitation are above)

We also expect no change from the ECB and continued hawkishness from Trichet in his ‘post-match’ press conference.

AUD continued its recent good run overnight as Aussie unemployment fell unexpectedly to 5.7% for September. The RBA became the first G10 currency to raise interest rates on Tuesday.

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