Forex News

The pound declined for another day after policy makers agreed unanimously to extend stimulus in order to rescue the faltering British economy from the longest recession in the last decades, decreasing attractiveness for an already weakened currency in foreign-exchange markets.

The U.S. dollar traded near a two-month high versus the British pound after this month’s central bank meeting talks published today indicated that all policy makers opted for extending its bond purchase program to revive the nation’s economy, despite admitting it has not been as effective as previously expected. Another decision from the Bank of England did not surprised traders as benchmark interest rates in the country remained at an all time record low of 0.5 percent, since the economy does not provide conditions even for speculative movements suggesting rate hikes in a foreseeable future.

The outlook for the pound depreciated as quantitative easing measures taken by the Bank of England has been ineffective, and the country’s resilience has been disappointing not only for traders and analysts, but for the population as well, setting pound-priced assets as one of the least appealing ones among the 6 top traded currencies.

GBP/USD traded at 1.5956 as of 12:58 GMT from a yesterday’s price of 1.6055. EUR/GBP climbed up to 0.8948 from 0.8895.

If you want to comment on the Great Britain pound’s recent action or have any questions regarding this currency, please, feel free to reply below.

Earlier News About the Great Britain Pound:

• Pound Suffers on U.K.'s Recession Numbers (2009-12-22)
• Pound Remains Bullish on Mortgage Approvals (2009-12-18)
• Retail Sales Force Pound Down (2009-12-17)
• Pound Advances Versus Euro on Employment Data (2009-12-16)
• Inflation Growth Helps Pound to Gain (2009-12-15)

This entry was posted on Wednesday, December 23rd, 2009 at 3:06 pm and is filed under Great Britain Pound. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.