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The Bank of England decided to keep their quantitative easing program at 175 Billion Pounds after many expected them to add to the program.  This was a positive sign that the BOE believes the economy is improving – a fact that leads analysts to believe that interest rates might be coming up sooner than initially expected.

There was however a difference of opinion among BOE governors regarding inflation, a topic that analysts will hope to gain better insight from during their November meeting cycle.

At 10:45PM GMT, the Pound was up 1.4% to the US Dollar to 1.66, up .84% to the Euro to .9043, up .8 against the Swiss Franc to 1.6702, up 1.6% against the Japanese Yen to 151.05, up .7% to the Canadian Dollar to 1.7311 and up .85% to the Australian Dollar to 1.787.

Forex Charts: USD/JPY

The USD/JPY survived an important test of support recently and appears ready for further gains if it can break above recent resistance at 91.33 after yesterday’s hammer-like reversal. The Bank of Japan’s Nishimura was out in the Asian session warning of continued risks to the country’s economy. New highs in bond yields are likely needed to get more than a basic consolidatory rally going here. To the downside, a break of 90.00 again, would have the bears growling.

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