Steady MPC votes would provide support to pound

Pound traders are awaiting BOE minutes as pound has taken a heavy hit over weaker than expected inflation data yesterday amid stronger dollar.

Bank of England (BOE) minutes will be released at 8.30 am GMT. Pound is trading around 1.549 this morning, down from its recent high around 1.581. Support lies at 1.536-1.532 and resistance at 1.582.

What to watch for in the Minutes-

a) Primary focus will be on MPC members' vote. As of now MOC members remain united over policy maintenance with 9 voting for no change in policy after two hawkish members joined the neutral club since January this year.

b) Mark Carney and several policymakers have indicated that rate hike to be the next probable move, however it remains to be seen what might be their strategy to weaken pound, which has remained a concern among policymakers.

c) Policymakers have remain downbeat on inflation amid lower oil price, however how confident are they over economic activities.

Any shift among voting members would be very volatile as market is not expecting any such moves. However bias towards easing won't be unusual given such low level of inflation.