It has been a choppy twenty-four hours for GBP/USD, with the currency pair moving between $1.5647 and $1.5526 as the graph below shows.
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The dollar received another boost on Tuesday evening as Atlanta Federal Reserve chief Dennis Lockhart indicated the U.S. central bank could look to raise interest rates in September.
Speculation has been mounting in recent weeks as to when the FED will increase its benchmark rate, with investors caught between a potential September or December rate hike.
Yesterdays comments from Mr Lockhart seem to have given investors the confidence that we will see the FED take action sooner rather than later and as a result the dollar strengthened across the board.
On the back of the announcement GBP/USD slipped over a cent with the mid-market price falling from $1.5631 to $1.5526. However, the dollars gains were short-lived as the pound managed to claw back the ground during today's session.
Big day for the Bank of England
Tomorrow is being dubbed 'Super Thursday' with the Bank of England set to change the way it delivers its inflation forecasts and stance on monetary policy.
From tomorrow the UK's central bank will announce its latest interest rate decision and inflation report along with the latest meeting minutes. We usually have to wait two weeks for the BoE to publish the minutes, which also show how the nine MPC members voted in regards to interest rates.
With all the information coming tomorrow everyone is keeping an eye on the votes to see if there is any change to the 9-0 result we have seen since the turn of the year.
Forecasts are suggesting we will see a split vote of 7-2, which last happened in December and it is the potential split vote that caused Sterling to recover the lost ground today.
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