Nevertheless, even if Britain escapes another quarter of contraction, the QE train seems unstoppable.

The dollar weakened against most major currencies following Bernanke’s announcement that  interest rates will likely remain near zero until late 2014. This was despite solid economic data coming out of the US.

In the US, Factory Orders, production leading indicator to value the new manufacturers’ orders over the past month, rise is expected from -0.4% up to 1.9%

Here are all the details, and 5 possible outcomes for GBP/USD.

The UK economy grew by 0.6% in Q3, which was surprisingly good news. Other indicators point to a more troubling picture for 2012, such as the current deficit, which has ballooned to 15.2 billion pounds.   Recently, the British pound managed to distance itself from the debt crisis affecting Europe. The movements in GBP/USD were still correlated with those made by EUR/USD, but the euro lost much more ground against the dollar. This has resulted in a big drop in EUR/GBP that reached levels seen only at the beginning of the year.

In the US, Unemployment Rate, monthly percentage indictor to value the jobless that are looking for jobs on the past month, about to remain 0.9%.

British bonds did enjoy the failed German bond auction, but this wasn’t enough to lift the pound. And while Q3 GDP was reaffirmed at 0.5%, Q4 looks very worrying. We will get fresh data about November now.

In the US, FOMC Statement, the key tool that is used by the FOMC regarding monetary policy with investors, and regarding  financial conditions for  other policy measures. It also discusses the outcome of upcoming votes on monetary outlook.

The pound also enjoyed a relatively small current account deficit. This provided a boost for the pound.

GBP/USD, that was already dropping prior to the release, now extends its falls and nears the 9 month lows reached a few weeks ago. End of the pound recovery?