The pound sterling gained against the dollar in early New York trading

[DailyFx]

The GBP/USD pair rose to 1.9814 this morning which matching a previous high on June 7th.
Ahead of the BoE minutes on June 20th, trader speculation has contended that the Bank of England will reiterate their hawkish basis making the case for higher rates.

Currency Market:
Presently; the BoE benchmark rate of 5.50 percent remains the highest among the G7 making the pound an excellent source for the glamorized carry-trade. Implied yields on the December interest-rate futures contract has gained 19 basis points in the past month, signaling that investors are wagering that The BoE Governor Mervyn King will make good on his comments and raise rates in an upcoming meeting.


Source: Bloomberg

Equity Market:
The UK benchmark FTSE 100 Index slipped 0.43 percent today closing at 6703.50. This slight consolidation comes after the index closed at a 7 year high last Friday. The world?s largest mobile-phone firm Vodafone (VOD) fell 0.74 percent finishing the session at 162.00. With a light week of economic data on the docket, traders pocketed some profits this morning in anticipation for further indications of inflation from the BoE minutes this Wednesday.


Source: Bloomberg

Fixed-Income Market:
In the backdrop of surging global yields; the 10-year gilt finished relatively unchanged up 1 basis point at 5.48 percent. The benchmark government debt nearly scrapped a seven-year high late last week on the heels of the 10-year US Treasury note, whose yields rose to their highest level in five years. Bond watchers will be following the M4 money supply data this Wednesday, to uncover a clearer picture of UK inflation.


Source: Bloomberg

Fundamentals:
Data is light this week with no headline figures set for release.
Next 24 Hours:
- BoE Minutes (06/20)
- Public Finances (06/20)
Consensus of 7.0B
Previous -3.8B
- M4 money supply growth (06/20)
Consensus of 13.4%
Previous 13.3%
See Daily FX Weekly Calendar for more details:
http://www.dailyfx.com/story/calenda...4476937.htm l