On Tuesday, the GBP/USD halted its rise as investors remained cautious before the Slovak vote for expanding the European rescue fund later in the day. The Slovak Parliament will discuss the expansion of the EFSF amid frictions between policy makers regarding the broadening of the European lifeline.
Also, Trichet said on Tuesday “The crisis is systemic and must be tackled decisively,” while there is divide among European leaders regarding the how deep would be the Greek bond writedowns. Where, on the other hand, the joint statement by inspectors from the European Union, International Monetary Fund and European Central Bank, know as the troika, that Greece will probably get the next tranche of last year’s 110-aid package in early November did not have much impact on the pair as the main focus is on the Slovak vote.
Moreover, data from the UK came mixed as while manufacturing production slipped 0.3% in Aug., industrial production rose 0.2% in the same month.
On Wednesday, unemployment data from the British economy will be out at 08:30 GMT, where ILO unemployment for the three months ended August will rise to 8.0% from 7.9% while jobless claims will decline to 19.0 thousands in September from 20.3 thousands a month earlier.
Thereafter, U.S. MBA mortgage applications for October 7 will be available at 11:00 GMT.
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