£/$ Bouyed by comments from a BoE policymaker, £ was able to post hestiant gains against $ yesterday, though its upward movement was limited.

• BoE policy board member Andrew Sentance alluded to the possibility that rising inflation would lead to an imminent end to the quantitative easing programme.
  
  
• He did add though that the economy, which on Tuesday was shown to have just barely made it out of recession in the fourth quarter, was facing opposing pressures which the central bank would have to consider in its Inflation Report next month.
  
  
• In the evening the dollar received a slight boost after the Fed struck an optimistic tone at the end of their two day meeting.
  
  
• Although they kept rates unchanged as expected, one board member dissented on the decision, saying that the Fed should remove the phrase vowing to keep the rate low for "an extended period."
  
  
• In trading this morning, the pound is continuing to climb, nearly up a cent on the day following a speech from Obama, which eased market worries about moves to regulate US banks.