Bank of England’s intervention provides modicum of Sterling support

The Bank of England’s dramatic intervention in the sovereign markets encouraged a modicum of support for the pound and despite shedding a few pips overnight, GBP/USD is at least in a stronger position this morning than it was at the start of the week.

Currently sitting at US$1.08, the four-hour chart shows a slight bear advantage on a spinning-top candlestick, though it could go either way in today’s trading session.

A slight bear advantage is taking hold this Thursday morning – Source: capital.com

Not that there’s a huge deal to celebrate for pound holders in the long run, but any sign of stemming the downward spiral to parity should be met with some enthusiasm.

Despite a degree of support, long-term outlook for the pound is still grim – Source: capital.com

The Euro is losing some ground against the US Dollar this morning after what turned out to be a net positive Wednesday session.

At just shy of US$0.97, the EUR/USD pair is sitting level with an early-week high.

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Germany’s flash inflation figures are due this afternoon, with general consensus pointing to an uptick on soaring energy prices.

The USD remains on top against all major currencies, having added 0.8% against the Canadian dollar and 0.4% against the Japanese yen.

With little on the US economic calendar today, we can expect the Dollar’s position to stand its ground.