Quite a day for the dollar yesterday and also sterling, with cable within touching distance of the 1.70 level. There was generalised dollar weakness at the start of the European session, with sterling helped by better services PMI data. There is also a growing perception that the status quo on the policy front cannot remain, with the Bank to set out its current thinking next week in its Inflation Report. But it could be the Financial Policy Committee that is where the action could be. This was set up so as to avoid bubbles and banking issues forming in the same way as the past and the buoyancy of the housing market could well see measures being taken, such as restraining the governments help to buy scheme or requiring banks to put more capital aside for mortgage lending. In theory, such a move would reduce the possibility of interest rate rises, because the pressure is taken off the Bank, but near-term it could be taken as sterling positive, because it would be seen as a sign from the authorities that the housing market is doing too well. The single currently has weakened a little after yesterday’s gains. The focus remains on the ECB meeting tomorrow and the potential for further policy measures. The market is not clear that this will be seen tomorrow. A further cut in the main refinancing rate would have minimal effect (already at 0.25%) and could be problematic unless the deposit rate (currently zero) is moved into negative territory. The ECB has been debating other ways of undertaking quantitative easing, but the question is whether they have finalised their thinking on this controversial issue. With EURUSD close to 1.40, the preferred option could be for the ECB President to put in some well-placed words to soften the currency, but the impact of these could well prove transitory. Further reading: ECB Preview: a small step to weaken the euro? 4 scenarios NZD/USD erases gains on Wheeler’s comments, mixed job data FxPro - Forex Broker FxPro - Forex Broker Forex Broker FxPro is an international Forex Broker. FxPro is an award-winning online broker, offering CFDs on forex, futures, indices, shares, spot metals and energies, serving clients in more than 150 countries worldwide. FxPro offers execution with no-dealing-desk intervention and maintains a client-centric business model that puts customer needs at the forefront of our operations. Our acquisition of leading spot FX aggregator, Quotix, enables us to offer access to a deep pool of liquidity, as well as top-class order-matching and some of the most competitive spreads in the market. FxPro is one of only few brokers offering Negative Balance Protection, ensuring that clients cannot lose more than their overall investment. FxPro UK Limited is authorised and regulated by the Financial Conduct Authority (registration number: 509956). FxPro Financial Services Limited is authorised and regulated by the Cyprus Securities and Exchange Commission (licence number: 078/07) and by the South Africa Financial Services Board (authorisation number 45052). Risk Warning: Trading CFDs involves significant risk of loss. View All Post By FxPro - Forex Broker Daily Look share Read Next EUR/USD – Slight Losses Ahead of Yellen Testimony Kenny Fisher 8 years Quite a day for the dollar yesterday and also sterling, with cable within touching distance of the 1.70 level. There was generalised dollar weakness at the start of the European session, with sterling helped by better services PMI data. There is also a growing perception that the status quo on the policy front cannot remain, with the Bank to set out its current thinking next week in its Inflation Report. But it could be the Financial Policy Committee that is where the action could be. This was set up so as to avoid bubbles and banking issues forming in the… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.