UK Pound Gains against the US Dollar

  March 08th, 2012 at 14:13, Miranda Marquit

20-pound banknotesThe UK pound is rising against the US dollar, enjoying gains not seen for more than a week. The latest interest rate decision by the Bank of England is to keep it the same. Additionally, the Bank of England is going to keep its debt-purchase program on hold for now.

The news that the Bank of England doesn’t feel it needs to continue with its quantitative easing program is welcome to many Forex traders, and is providing a measure of support for the sterling. However, even though it appears that members of the Monetary Policy Committee believe that the economy is doing well enough to preclude more easing, they still aren’t comfortable enough with growth to raise interest rates from their record low. The news is positive enough, though, to help the pound against the US dollar.

For now, the pound is lower against the euro in Forex trading. The ECB kept its benchmark rate the same as well. What many Forex traders are really waiting for, though, is the news of the Greek deal. If everything goes according to plan, the euro should get a boost against the pound. If there are hiccups, though, and if the Greek debt swap doesn’t happen, the sterling could gain against the euro.

At 14:11 GMT GBP/USD is higher at 1.5795, up from the open at 1.5741. EUR/GBP is higher at 0.8387, up from the open at 0.8353.

If you have any questions, comments or opinions regarding the Great Britain Pound, feel free to post them using the commentary form below.

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