British Pound to Target Fresh Highs as BoE Preserves Forward-Guidance -David Song, Currency Analyst at DailyFX

"The Bank of England's Inflation Report may produce fresh highs in the British Pound should the central bank retain the 7% unemployment threshold, while preserving a positive outlook for the U.K. economy. Indeed, the BoE may show a greater willingness to normalize monetary policy sooner rather than later as the U.K. recover gathers pace, and the growing threat of an asset-bubble may encourage the central bank to raise borrowing costs later this year in order to balance the risks surrounding the region. However, BoE Governor Mark Carney may talk down bets for a rate hike in 2014 as inflation falls back to the 2% target, and the Monetary Policy Committee (MPC) may lay out an interest rate forecast similar to the Federal Reserve in an effort to better-manage market expectations."