ForexLive European Morning Wrap – MPC Minutes Drive the Pound Lower

BOE MPC Minutes showed 6-3 vote on more QE with King voting for additional $2.3 bln MPC considered a rate cut, needs additional measures to stimulate demand http://www.forexlive.com/blog/2013/02/20/boe-mpc-minutes-summary-rate-cut-considered-other-measures-needed/ Pound fell instantly across the board  GBPUSD  1.5360 from 1.5440, EURGBP to 0.8752 from 0.8703 UK claimant count data better than expected with -12k for Jan but revised 15k for Dec UK Unemployment headline rate 7.8% v 7.7% German Chancellor Merkel says EURUSD between 1.30-1.40 is normal range historically French budget minister says 3% deficit goal will be " extraordinarily difficult" French CPI Jan mm -0.6% v 0.4% Dec German CPI Jan mm - 0.5% v - 0.5%  Dec  yy 1.7% v 1.7% German PPI Jan mm   0.8% v 1.5% Dec  yy 1.7%  v 1.4% Nothing going on until 09.30 and the release of the BOE MPC minutes from their latest interest rate meeting. Then a bombshell that the QE vote was 6-3 compared to 8-1 last time with Governor King voting in favour of further QE of £2.3 bln... Add to that the not inconsiderable matter of them discussing an interest rate cut and admitting that further measures would be needed to stimulate deman. Cue GBPUSD dropping like a stone from 1.5440 to 1.5360 then to 1.5320 and finally 1.5295 taking barrier options out along the way. EURGBP up to 0.8752 then 0.8765  from 0.8703. Similar story for the Pound across the board. The slightly better than expected UK employment data was ignored, http://www.forexlive.com/blog/2013/02/20/uk-unemployment-data-summary/ and we've seen a soft tone to GBP since with traders just a tad frazzled.. Other news of any note/interest came with French Budget Minister saying that 3% budget deficit goal was " extraordinarily difficult " and German Chancellor Merkel saying that EURUSD between 1.30-1.40 was  " normal range historically". Small Euro selling on both the remarks from 1.3415 and 1.3398 respectively but then it all dried up again. AUDUSD has also had a busy time of it seeing first buyers to 1.0369 then sold off again to 1.0316. GBPAUD stop loss selling being cited. Early NY trading is seeing some renewed attempts to buy USD with EURUSD just posting session lows of 1.3366 and GBPUSD 1.5282 accordingly. We have US data at 13.30 GMT and then it's the turn of the Fed's FOMC to see if they can have an comparable impact to the BOE when they release their own minutes at 19.15 GMT. A busy session ahead.............