The FX market has been rather volatile the past couple of days as investors look for direction. The GBP has taken a leap upwards in value and finds itself approaching highs not seen since November of 2011. This has happened on the heels of yesterday’s talking points given by BoE Governor Mark Carney regarding inflation and monetary policy.

Without any major data due from the U.K. before the weekend GBP traders will have an opportunity to test ranges and the current strong trend while the broad markets remain cautious particularly in global equities.

Retail Sales figures were released a little while ago in the States and proved negative. And the weekly Unemployment Claims were also disappointing. U.S. data continues to show that the economy remains challenging. Given Fed Chairwoman Janet Yellen’s comments before Congress a couple of days ago, investors will have to decipher the ‘caretaker’ approach which was largely sounded and weigh that against the possibility that the Fed and the U.S. government continues to under-estimate the risk that the global economy faces. Another session which was supposed to be held today in Washington, D.C. has been postponed due to a snow storm.

The EUR has been treading water the past two sessions but needs to be watched. While it has not broken through resistance it continues to show a strong consolidated mode. Preliminary GDP data will come from Germany and France tomorrow and should serve as a looking-glass into the health of European conditions.

Equities have been lacklustre and today’s session on Wall Street is looking at early losses.