This morning we have seen inflation data released for the U.K and we have indeed seen the Pound drop a little against the majority of major currencies and most notably we have seen the rate against the Euro drop away from near four year highs.
This may start what may be a testing week for the Pound with the Bank of England minutes due out tommorow morning at 09:30am which may throw anything into the mix. The BOE minutes will generally detail how the members of the Monetary Policy committee came to their decisions during the last interest rate decision. On that particular occasion we saw the BOE introduce more QE (Quantitative Easing) which was widely expected therefore did not hit the Pound too much. Indications of further QE in the future may well lead to Sterling weakness tomorrow though.