FX Closing Comments

Wednesday was a very dull day in FX trading, with all the major pairs holding steady ahead of ECB and Bank of England rate announcements, which are due tomorrow. The ECB is expected to move a quarter-point higher, while the Bank of England Monetary Policy Committee is expected to hold steady at 4.5%. Any change from this expectation (i.e. a surprise BoE move or a 50bp ECB move) would surely shake-up the market.