The British pound continues to be one of the weakest currencies in the foreign exchange market.
Since the beginning of December, it has fallen over 1000 pips. Even though economists are not looking for the Bank of England to cut interest rates on Thursday, traders have priced in a 40 percent probability of a 25bp rate cut. This means that if rates are left unchanged, the British pound should rally because part of the recent weakness is due to the pricing in of potential easing. Before the BoE rate decision, there are a number of UK economic releases due for release including the BRC retail sales monitor, their shop price index, nationwide consumer confidence and the trade balance.