The pound to euro exchange rate is unchanged with GBP EUR at 1.1474. The pound to dollar exchange rate is 0.43% lower with GBP USD at 1.6358. The pound to Australian dollar exchange rate is 0.53% up on the day with GBP AUD at 1.5351. Pound to euro is away from its recent highs up near €1.15; the strong UK services figure proved insufficient to push sterling upwards against the euro. "The UK services sector expanded at its fastest pace in four months, which overshot expectations considerably and got the UK economy off to a surprisingly positive start to the third quarter. Bets on further UK quantitative easing will have been pared back in the response to the news but as shown by sterling’s short-lived rally against the euro, the market will need further evidence that the UK economy is on a stable footing. Sterling also struggled against the euro thanks to some positive eurozone data," says a note from Richard Driver at Caxton Fx. The Bank of England rate decision has been a non-event in recent months; the market has no expectations of a UK rate rise from its current 0.5% level in the near-term (regardless of yesterday’s growth figure). The ECB is far more hawkish on inflation and far more willing to indicate future monetary policy, so Trichet’s conference will be watched closely. This pair is trading at €1.1450 and direction today will probably be wholly dependent on Trichet’s comments.

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