The pound to euro exchange rate is 0.096% lower on the day with 1 GBP = 1.1482 EUR. The pound to dollar exchange rate is 0.191% lower with 1 GBP = 1.5700 USD. The pound to Australian dollar exchange rate is 0.045% lower with 1 GBP = 1.5301 AUD. As the above figures show it has been a poor start to the day for the British Pound Sterling. Key to this failure will be continues weak sentiment towards the UK economy. Currency markets will be watching the latest set of MPC minutes from the Bank of England for any signs that quantitative easing could be restarted in coming months. (This is the printing of money by the Bank of England - it is a big negative to the pound). Nevertheless, yesterday the pound enjoyed a relatively modest bounce. The GBP gravitated higher over the course of European and US trade, peaking at 1.5748 before closing at 1.5737. Cameron Peacock at IG Markets says: "One of the potential reasons for the overnight gains was reports that UK ministers were in discussions about a £5 billion 'boost' for the economy. "That said, a potential negative drag on the pound could be tonight’s release of the September BoE minutes, with talks of further asset purchases likely to be featured." These minutes, as well as tonight’s FOMC meeting, loom as the most immediate directional catalysts for the pound. GBP USD currently sits at 1.5736. According to the UBS technical team, the break of 1.5676 signals an extension of losses towards the key low from December 28 at 1.5346. Interim support lies at 1.5588, the January 12 low. However, the pair is oversold, and a short-term correction is possible. Near-term resistance is at 1.5756 ahead of the September 15 high of 1.5866.

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