The pound euro exchange rate is 0.150% lower on the day with 1 GBP = 1.1323 EUR. The pound dollar exchange rate is 0.369% lower with 1 GBP = 1.5922 USD. The pound to Australian dollar exchange rate is 0.041% lower with 1 GBP = 1.5005 AUD. "With nothing expected by way of a change in today’s Bank of England interest rate decision, we will have to wait a fortnight for the MPC minutes to be released. The real issue is how close the MPC is to introducing further quantitative easing. They are coming under pressure from business leaders to act soon in the face of the UK’s economic downturn," says a note from UK money transfer company Caxton Fx. Indeed, Trichet’s ECB press conference will garner more interest; calls for an interest rate cut are increasing in the eurozone, with growth slowing down in the region and with the debt crisis continuing to spiral out of control. The ECB is highly likely to leave policy unchanged for now though. This pair is trading just above €1.13 and the euro remains vulnerable. Meanwhile Sterling was dragged yet lower against the US dollar yesterday, hovering just above a seven month low. "The dollar strengthened yesterday, ahead of President Obama’s speech to unveil plans to boost job and economic growth. Many are taking this as a sign that Ben Bernanke will not be introducing QE3, or that it at least eases the pressure on him to do so. If this is so, then this does remove a major obstacle to longer-term dollar strength, but the picture remains highly uncertain," says the UK money transfer company. GBP USD is trading below $1.5950. Sterling’s weakness must be related to speculation of further UK monetary easing; consensus forecasts suggest this will not arrive today and we may see sterling rebound a little as a result.

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