GBP/USD is staging around key levels ahead of major U.K. data due to come out at 4:30 a.m. and 5:30 a.m. EDT respectively on Wed, February 10th. Due out at 4:30 a.m. EDT is manufacturing production expected at 0.4%. The series is released every month about 40 days after the month ends and is the change in total inflation-adjusted value of output by manufacturers. The last two numbers in the series actually came out at 0.0% (flat) against expected positive numbers, with the last positive reading in November around 1.7%, (expected at 1.1%).

Fear continued to grip the capital markets last week, even though skepticism only had a major impact on the US markets on Thursday.  The equity and commodity markets consolidated and moved higher early during the week just to see trepidation creep in during the second half.  On the Forex market, the Dollar gave back some of its recent gains, but found support, which led to nice rally.  The Australian dollar, the Euro and the Pound all faced losses as investors fled to the U.S Dollar.

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  Bank of England - 12:00 GMT

 

On the first rate announcement of the day, due at 12:00 GMT, the Bank of England is likely to keep interest rate unchanged at a record-low of 0.5%. Investors’ polls coincide almost unanimously to this forecast, pointing out in addition that they expect no further increments to the BoE’s current scope of quantitative easing measures. The central bank initiated in March last year an unprecedented bond-purchase program amid the worst global financial crisis since the 1930s. Rumors circling the market suggest that the BoE may announce today a pause to its asset-buying program at the current level of 200 billion pounds, making the first move towards stabilizing its monetary policy.