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According to Reuters, sterling increased to $1.6210 this morning (February 23rd) after there were further expectations the Bank of England's policy minutes, which are due out today, may show a "hawkish" voting pattern.
What's more, there has been speculation a third Monetary Policy Committee member may have joined Martin Weale and Andrew Sentance in voting for a rate rise.
A London-based spot trader pointed out: "I prefer selling sterling should the post-minutes reaction cause a squeeze to the $1.6330-1.6360 area."
In addition to this, the news provider noted the interest rate would need to rise two or three times this year to provide a decent chance for inflation to return to its target.
This comes after the pound had a mixed morning yesterday as it was down by 0.4 per cent against the dollar, but up versus the euro.
Posted by Greg Secker
