The Pound declined against the Euro and Dollar yesterday. U.K. economic reports and the Bank of England minutes might have some influence but are unlikely to shake sterling out of its ranges.

The minutes of the MPC’s Dec meeting are released in conjunction with the GDP figures, and should report another 3-way split amongst the members, with the bulk of them opting for no change. It will be interesting to see whether the committee are more concerned about the UK’s prospects post the events abroad with Ireland, and the ongoing Sovereign debt issues surrounding Euro land more generally.

The Dollar made gains against the Pound and the Euro yesterday bolstered by an increased in risk aversion. Final Q3 GDP data could be the focus of attention today, with reports due in the US are expected to confirm previous estimates and thus may not have much market impact.

The Euro made gains against the Pound while declining against the Dollar as markets continue to fret over European sovereign debt concerns. The latest blow came from Moody’s, which warned that it might cut Portugal’s credit rating, while Fitch said the same about Greece.

Data released 22.12.10

UK      09.30 BoE Monetary Policy Committee Minutes of 8th-9th December Meeting

US      13.30 Final GDP (Q3)

US      15.00  Existing Home Sales (November)