GBP pushes higher versus US dollar, Australian dollar, Euro, South African Rand and more

We have had some good employment figures out of the UK economy today which has undoubtedly helped sterling.

However, it is news that the Bank of England's MPC voted unanimously against increasing the bond purchase programme (quantitative easing aka. money printing aka. sterling's nemesis) at their July meeting.

The reason for much of sterling's woes in the past month have been directly attributal to concerns that the new governor Mark Carney would look to restart asset purchases.

"Today's news should provide better support for sterling which has been particularly weak against the euro on the assumption that Mr, Carney would maintain a very loose monetary policy. Now that impression has been corrected EUR/GBP should correct as well with the pair drifting back towards the 8600 level as the week progresses," says Boris Schlossberg at BK Asset Management.

Currency traders had expected to see more dovishness from the BOE minutes, but the shift away from stimulus created an instant short squeeze in the pound sending the currency pair through the 1.5200 level in morning London trade.

RBS say quantitative easing now fully off the table

The threat of quantitative easing has evaporated says Ross Walker at RBS:

"The MPC delivered a shock 9-0 vote on extending QE purchases in July. This followed 6-3 votes (including the outgoing Governor Mervyn King) since February and a strong market consensus for a 7-2 outturn

"MPC Doves in retreat with a 9-0 vote on QE gilt purchases. RBS view: QE is now fully off the table in 2013 and probably 2014."

Sterling's detractors caught short

Mark Deans at Moneycorp joins Stephen Gallo at BMO Capital in questioning the market's thinking in selling sterling ahead of today's MPC Minutes:

"As suspected, sterling's antagonists were not in the mood to bother themselves with the need for evidence of its misdeeds; it was in the wrong place at the wrong time and it paid the price as investors stood their ground. UK headline CPI inflation came in at 2.9% for the year to June, close to - but crucially just short of - the top of its permitted 1% - 3% target range.

"For the majority of investors that was proof enough that the new Bank of England governor would be able to use his charismatic charm to persuade another two members of the Monetary Policy Committee (Paul Fisher and David Miles are already converts) to join him in voting for a further round of asset purchases."