Bank of England’s Decisions Affect Pound’s Performance
The pound remained bearish this week as market sentiment towards assets in the U.K. didn’t manage to improve, after interest rates remained at a record low in the country, according to what most analysts expected to happen for today’s decisions.
After interest rates were maintained at 0.5 percent by the Bank of England this Thursday, the pound didn’t manage to revert a negative trend versus most of its main trading partners currencies, as the economic scenario overseas remain considerably better internationally than the investment conditions in the U.K. The euro was the only important currency to lose versus the pound after the ECB announced that interest rates are adequate for the present economic situation in the bloc, declining odds that rate hikes will follow in the next months, thing which is unlikely to happen in the U.K. as well.
The pound is very likely to find hard times ahead in the following months, with an eventual resuming of BOE’s
GBP/USD fell slightly in the intraday comparison at 1.5031 as of 21:21 from 1.5089.
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Earlier News About the Great Britain Pound:
- Consumer Confidence Support Sterling's Advance (2010-03-03)
- British Crisis Pushes Pound Further Down (2010-03-02)
- Budget Deficit Sets Pound to Sharp Fall (2010-02-27)
- U.K.'s Pound: New Budget Deficit Victim? (2010-02-26)
- Pounds Meets Abyss on Fiscal Concerns, U.S. Discount Rate (2010-02-19)
