The Pound traded in a relatively narrow range yesterday after the Bank of England announced it would hold interest rates at 0.5 percent, its lowest level since the worst of the financial crisis more than five years ago.
The Bank's Monetary Policy Committee (MPC) made no statement but analysts believe the pace of Britain's recovery looks likely to split its policy makers soon over when to start weaning the economy off its support.
The vote on this interest rate decision will be released next week. For some time it has been 9-0 in favour of keeping rates at these low levels, in the coming months we could start to see a split in the vote indicating a greater probability if an interest rate rise in the UK
The Dollar remained flat throughout the London session despite data revealing fewer Americans than forecast filled for unemployment benefits last week. A good sign the US job market continues to strengthen. The data revealed jobless claims declined by 11,000 to 304,000 in the week ended July 5, the fewest in more than a month.
These figures combined with data last week showed payrolls exceeded expectations in June and the unemployment rate fell to an almost six-year low gave the markets some hope for the ailing US economy.
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Daily Market Report – 11/07/2014