European Traders Focus on BOE, ECB today

Focus in the European forex markets turns to BoE (1100 GMT) and ECB (1145 GMT) rate decisions after weak US ADP and non-manufacturing ISM data Wednesday, and comments from Bernanke. The BoE decision is seen as a close call, but the central bank is expected to stay on hold at 4.75%. The ECB's decision is seen as a done deal, a hike of 25bp to 3.25%, but as always it will be the first few minutes of Trichet's Q&A session at the 1230 GMT press conference that will set the stage.

Looking at the charts, EUR/USD remains in a 1.2655-1.2780 contracting range and would sell rallies to the upper limit with stops above 1.2830, covering on dips to 1.2650.
For cable, Its within the 1.8685-1.9060 range, and while the base holds looks for a move toward pivotal resistance at 1.8910-30 where temporary failure is expected.

EUR/USD trades at 1.2715, cable at 1.8860.