Outlook for the British pound on Thursday the 6th: BoE Asset Purchase Facility + Interest Rate Decision

Today's Services data was particularly good - setting the tone for further GBP gains this week.

Tomorrow we have another key event - the BoE Interest Rate Decision is announced by the Bank of England.

However, there is virtually nil chance of an interest rate change.

Also up for consideration at the Bank of England is whether to increase the Asset Purchase Facility from 375 BN pounds.

Again, consensus estimates suggest no changes will be announced, particularly with Governor Mervyn King hanging up his boots following the meeting.

Indeed, this event will only grow in importance in coming months as many expect incoming Governor to boost the facility - a sterling-negative.

However, there is now an emerging train of thought that suggests because the UK economy is improving there is no need for such monetary activism by Carney.

If this idea takes hold expect further GBP appreciation.