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BoE Forbes said rate hike could happen sooner than expected

Bank of England Kristen Forbes in a Wall Street Journal interview said she is optimistic about the global economy’s prospects given robust growth in the U.S. and the potential for cheap oil to boost consumption and investment in the U.K. and elsewhere.

ECB left interest rates unchanged

As it was largely expected the Governing Council of the ECB decided that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.05%, 0.30% and -0.20% respectively.
 
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Sterling lower in a tighter-range European session

Sterling edged down slightly this morning, in a steadier session, with no data releases from the UK. Despite weaker then expected UK CPI figures Sterling remains stable, indicating that 1.50 handle is major support area for it. 

Sterling finished the year lower than expected

Sterling finished the year around 1.5580 area. This was much lower than initial analysis at the beginning of 2014 were placing it. In the course of the year Sterling came as high as 1.70 handle. However, after economic growth slowdown in the second part of the year and announcements from BoE officials that interest rate hike, which was expected in 2014 would not happen before the end of 2015 or even in 2016 Sterling started to decrease.
 
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