Today’s sample of Forex Analysis from ForexHound.com

The GBP USD was under pressure most of the trading session on Tuesday, but recovered into the close to finish off the low.

The early weakness in the Sterling was caused by a government report stating that British consumer prices were steady in September. This report did little to clarify whether the Bank of England will undertake another round of quantitative easing to boost a slowing economy.

Earlier in the month on October 7, the BoE refrained from increasing QE, opting instead to continue to monitor the economic indicators. Since Tuesday’s report was inline with expectations, nothing can be concluded at this time regarding the central bank’s next move.

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