Sterling has held onto broad based gains seen over the last 48 hours ahead of today’s Bank of England policy decision and statement. The Pound will today take direction from the statement which will issue fresh guidance on policy and the outlook for interest rates and the economy .They are likely to keep interest rates and quantitative easing levels unchanged at current levels, but the tone struck by policy makers will decide whether Sterling can extend further.

U.S. annualised GDP data is due for release at 1.30pm today, consensus suggests a growth rate of 4.1%. The US Dollar has traded with a softer tone as stock markets recover some of the losses seen since the Fed Reserve meeting last week.

The Euro holds above the $1.1900 level on upbeat PMI readings. Eyes will today be on the latest German IFO data, an indicator of current business conditions.