Pound Down on China’s New Requirements
China brought risk aversion once again to high levels before the end of this week’s session after it announced new lending requirements for banks, making the pound to trade towards another week of losses versus lower yielding currencies.
The pound was once again affected by a negative market sentiment internationally after China, for a second time this year, announced new lending reserve requirements for banks to provide loans, in order to control the growing inflation in the country, and consequently raising risk aversion in markets worldwide, which allowed refuge currencies like the U.S. dollar and the yen to post the sharpest gains versus the sterling this Friday. Bank of England‘s position to leave the possibility of resuming their
The situation in Europe and China’s loan restrictive policy is impacting the pound’s attractiveness, and the currency may experience new record lows specially versus the greenback and the yen as long as this scenario continues to decline the sterling’s attractiveness.
GBP/USD traded at 1.5629 as of 15:05 GMT from as high as 1.5732 hours earlier. GBP/JPY traded at 140.59 from 141.87.
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 Declines on Asset Purchase Speculations (2010-02-06)
- Pound Falls Sharply on BOE Statements (2010-02-04)
- Pound Slides on Real Estate Data (2010-02-02)
- Pound Bullish Before GDP Report (2010-01-25)
- Pound Ends Week Falling on Retail Sales (2010-01-23)
