The GBP dropped by about 150 pips versus the Dollar after the Bank of England (BOE), against investors' expectations, decided to raise its quantitative easing program by 50B Pounds. The BOE also kept the official bank rate at 0.50% and while stating that the country is on the path to recovery the fundamentals are still fragile.
The EUR also lost some ground against the Dollar ahead of the ECB statement and Friday's U.S Non-Farm Employment Change. As expected the ECB kept the interest rate unchanged at 1.00%. The release had little affect on the EUR as investors await the ECB statement at 12:30 GMT, which will provide an in-depth look into the Euro-Zone economy.
The NY market opens today with the publication of the U.S Unemployment claims as well as the ECB statement at 12:30 GMT, which promises to lead to a very volatile market. After Wednesday's disappointing ISM Nom-Manufacturing PMI release, traders are staying cautions with their riskier bets, any worse than expected data might lead to a return of risk aversion and a bullish sentiment on the USD and JPY
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