Pound Slumps Ahead of Central Banks’ Meetings

  July 31st, 2013 at 0:02, Vladimir Vyun

The Great Britain pound slumped today ahead of central banks’ meeting this week on speculations that UK policy makers will keep stimulus in place to maintain momentum of economic growth.

Bank of England policy makers will gather on August 1. The central bank released a very strong statement after the last meeting, suggesting that there likely be no additional stimulus. Such prospect boosted the sterling, which now is weakening as the comments did not promise reduction of accommodative measures either.

The Federal Reserve and the European Central Bank also conduct policy gatherings this week. Their decision may have great influence on the pound’s performance too.

GBP/USD dropped from 1.5335 to 1.5241 as of 23:58 GMT today. GBP/JPY fell from 150.22 to 149.32, following earlier rise to 150.90. EUR/GBP edged up from 0.8644 to 0.8702.

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