Chart: WorldWideMarkets Alpha Trader
Sterling was well bid against the weaker dollar from the European open, making steady gains to 1.4955 from the session low of 1.4845 (+110 pips) as the market continuted to digest the relatively hawkish comments from Bank of England's Deputy Governor, Shafik.
BOE's Deputy Governor Minouche Shafik said that "Interest rates in Britain are likely to rise despite inflation falling to zero." She adds the main reason behind lower inflation was a rapid decrease in oil prices and the negative effect of an appreciating sterling on UK firms' profits.
The pound also benefited from the declining US dollar in today's price action. The Chicago Fed President Charles Evans said that U.S. inflation is "too low" - that inflation gauges are flasing a warning sign and the strong dollar is exerting "clear disinflationary pressure." (10:30 GMT)