There are no significant breaks to the upside for Sterling yet with the Pound having traded either side of USD 1.3900, but yet to test the EUR 1.1600 zone. Both levels offer strong short-term resistance as UK/EU economic relations look to be threatened again. As the French fishing fleet are expected on the coast of Jersey, Royal Navy ships have already arrived on patrol. As a result, there has been some moderate Sterling selling so far this morning versus the Euro, all ahead of today’s Bank of England policy meeting and statement.

EUR/USD remains pressured towards the downside around USD 1.2000 level, but so far has rejected any further selling interest as global stocks hold up well despite this week’s comments from Treasury Secretary Yellen on higher interest rates. The Dollar is moderately softer across the board as commodity currencies, in particular (AUD and CAD), also hold onto recent gains.