The Bank of England minutes essentially said that no discussion was made about a potential rate cut for the U.K at present (a rate cut generally weakens a currency as it makes it less attractive to investors) and on top of this the minutes also mentioned that further Quantitative Easing was voted against by 9-0 by the members of the monetary policy commitee as well. Even the mere mention of QE over the past few years has tended to weaken the Pound so the fact that both this may be off the cards for a while now and that an interest rate cut also appears to be quite a way away has been seen as very positive for Sterling.

I feel now after reading through the data released yesterday and indeed this morning that there is a good chance that the Pound may have a good period. A few data releases have been fairly positive and we are due to enter the month of September which will bring us all of the economic data releases from August (where the majority of the Olympics took place) and personally I feel figures should have picked up over that time frame.